Taxation

The Tax Court in Genie R. Jones v. Comm’r ruled against a captive insurer electing 831(b) status, citing lack of risk distribution, non-arm's-length premiums, and failure to operate as a bona fide insurer. The decision continues a pattern of unfavorable rulings where captives lack key elements of valid insurance operations. Read More

The Oklahoma Insurance Department revised its captive insurance premium tax forms after an error miscalculated the minimum tax due. Captive managers must delete draft filings and use the corrected National Association of Insurance Commissioners OPTins form. Updates clarify fiscal-year filings and prorated taxes for new captives. The March 1 filing deadline remains unchanged. Read More

The 831(b) Institute advocates against the latest Internal Revenue Service (IRS) regulations on 831(b) captive insurance, arguing they impose unfair compliance burdens. This article examines industry concerns, key court rulings, and legislative efforts to protect captives as a risk management tool, providing insight into the advocacy efforts shaping the regulatory landscape. Read More

Rob Walling of Pinnacle explores how 831(b) captives are reacting to the IRS's new regulations. Some are fighting back, others are adapting their structures, and some are shifting away from the election. Despite regulatory challenges, captive insurance remains a powerful tool for businesses managing risk and financial stability. Read More

The Internal Revenue Service (IRS) finalized regulations on micro-captive insurance, revising criteria for listed transactions and transactions of interest. New disclosure rules affect 831(b) captives, with a 90-day compliance window. Exemptions apply for consumer coverage reinsurance, and a new process allows streamlined revocation of the 831(b) election under Rev. Proc. 2025–3. Read More