Taxation
831(b) Captives Listed Transaction Comments Due June 12
Proposed regulations issued by the Treasury Department and Internal Revenue Service include parameters for considering micro-captives listed transactions. Public comments on the proposed regulations are due to the IRS by June 12, and a public hearing in regard to these regulations is scheduled for July 19. Read More
Third Circuit Court of Appeals Affirms District Court Regarding IRS Subpoena
A US appeals court recently upheld a lower court ruling that the Delaware Department of Insurance must comply with an IRS subpoena for captive information. The case is part of ongoing IRS scrutiny of captive insurance companies opting to be taxed under section 831(b) of the Internal Revenue Code. Read More
Appeals Court Denies Delaware Bid To Block IRS Micro-Captive Summons
A federal appeals court has ruled against the Delaware Department of Insurance's efforts to block a summons from the Internal Revenue Service (IRS) for information about Delaware-domiciled captive insurance companies. A lower court had earlier denied the Delaware department's motion to quash the summons, leading to the appeal. Read More
Analyzing Proposed Regulations Updating IRS Notice 2016-66
On April 10, 2023, the Internal Revenue Service (IRS) issued proposed regulations addressing micro-captive insurance transactions that must be reported as either a listed transaction or other transaction of interest. The IRS previously issued guidance on this topic (Notice 2016-66), which a Tennessee federal district court recently invalidated. Read More
Treasury, IRS Propose Regulations Targeting Micro-Captive Transactions
The US Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations identifying certain micro-captive transactions as "listed transactions" and certain other micro-captive transactions as "transactions of interest." The move comes days after the IRS released its 2023 Dirty Dozen list, which included abusive micro-captive transactions. Read More