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.
The State of Connecticut Insurance Department (SCID) will help accounting firms in the state to expand their presence in the captive insurance market.
The IRS is spreading fear, uncertainty and doubt about the captive industry in an effort to increase its own revenues, according to Sean King, principal of CIC Services.
Participants in high deductible health plans (HDHPs) will maintain eligibility to health savings accounts (HSA) even if testing or treatment for coronavirus is provided before their deductible is met.