Taxation

The 831(b) Institute and industry groups are challenging new Internal Revenue Service (IRS) regulations that label many micro-captive insurance arrangements as listed transactions. They argue the rules revive issues from the vacated Notice 2016–666, conflict with the Protecting Americans from Tax Hikes Act, and unfairly burden legitimate 831(b) captives used for small business risk management. Read More

Allan Autry of Johnson Lambert joins The Edge of Risk to explain tax qualification, compliance pitfalls, and evolving strategies in the captive space. Learn how federal and state standards diverge, when captives may not need tax status, and how to future-proof your structure against regulatory challenges. Read More

Captive manager CIC Services has filed a second lawsuit against the Internal Revenue Service (IRS) looking to invalidate an IRS rule targeting micro-captives. CIC Services says the rule is regulatory overreach by the IRS and that the new rule mirrors an earlier regulation that was struck down in court. Read More

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