Taxation

The Self-Insurance Institute of America (SIIA) has responded to a recent statement by the Internal Revenue Service (IRS) on abusive micro-captive arrangements by calling on the IRS to move towards recognizing appropriate captive insurance structures and providing guidance. Read More

Legislation given final approval last week by Washington State lawmakers will set new requirements for captive insurance companies licensed in other domiciles but doing business in Washington. The legislation creates new fee and premium tax requirements for captives insuring Washington-based risks. Read More

The Internal Revenue Service (IRS) is urging participants in abusive micro-captive arrangements to exit those arrangements as soon as possible. The IRS said it has increased examinations of micro-captive arrangements and noted that it recently won another US Tax Court micro-captive case. Read More

Legislation approved March 9 by the Washington State Senate would set new requirements for captive insurance companies licensed in other domiciles but doing business in Washington State. Under the legislation, captives licensed elsewhere and operating in Washington would be required to pay fees and premium taxes. Read More

An independent report commissioned by Washington state concedes that a 2 percent tax on premiums paid to captive insurance companies insuring Washington-based risks will likely have a "material" effect on the future use of captive insurance and reduce the tax base it is targeting. Read More