It relates to Notice 2016-66 that forces some captives owners to report tax details to the IRS.
While the penalty is lower in the Oropeza case, this is an exception.
It addresses specific concerns the captive insurance industry has around recent actions by the IRS.
The IRS has petitioned the US District Court for the District of Delaware to enforce a summons for documents held by the Delaware Department of Insurance (DDOI) related to the IRS’ microcaptive investigation.
US states could increase their efforts to raise tax from captives in coming months as they seek to raise money to offset reduced revenues during the COVID-19 pandemic, according to Dan Kusaila, a tax partner at Crowe.
The Tennessee Captive Insurance Association (TCIA) will write a letter to the Internal Revenue Service (IRS) regarding IRS Letter 6336, it has confirmed.
Global average commercial insurance prices increased 14 percent in Q1 2020, according to the Global Insurance Market Index, released by Marsh.
The Vermont Captive Insurance Association (VCIA) has written to Steve Mnuchin, the US Secretary of the Treasury, and Paul Rettig, the Commissioner for Internal Revenue, calling on the Internal Revenue Service (IRS) to suspend its audit activities of micro captives.
The Internal Revenue Service has extended the due date to respond to its letters of inquiry to certain micro-captive insurance participants.
The IRS’ targeting of captive insurance companies has left companies more vulnerable to the economic ravages of COVID-19, according to CIC Services.