IRS Looks To Hire 200 Attorneys To Focus on Abusive Tax Schemes

January 25, 2022

The US Internal Revenue Service’s (IRS) office of chief counsel plans to hire up to 200 additional attorneys to focus on abusive tax schemes, including abusive micro-captive arrangements. The IRS said the attorneys will help it manage the increasing caseload in its multiyear effort to stamp out abusive tax schemes. Read More

Avoiding Potential Pitfalls Is Key to Long-Term Captive Success

December 13, 2021

Captive insurance can be a powerful risk management and risk financing tool, but those considering forming a captive must avoid potential pitfalls. A recent report from Ernst & Young LLP outlines five potential pitfalls prospective captive owners should be aware of to ensure long-term captive success. Read More

Washington Commissioner Approves Regulations for Captive Fees, Taxes

November 23, 2021

The Washington State Office of the Insurance Commissioner has given final approval to regulations issued in August to implement legislation that state lawmakers passed in April imposing new fees on captive insurance companies licensed in other domiciles but doing business in the state of Washington. Read More

Washington Voters Reject Captive Tax Law in Advisory Ballot Measure

November 4, 2021

On Tuesday, Washington State voters rejected a recent law that imposes premium taxes on captive insurance companies licensed in other states but doing business in Washington State. However, the law will remain in effect unless state legislators vote to repeal the measure. Read More

Best Says OECD Global Minimum Tax May Be Challenging for Some Insurers

October 26, 2021

An anticipated global minimum tax on certain multinational companies creates the potential for double taxation on some insurers, according to A.M. Best. While short-term insurance coverages might fit into the tax scheme, A.M Best says the application of that minimum tax could prove challenging for insurers with longer-duration coverages. Read More