News

Accounting & tax analysis

US Tax Court rules IRS microcaptive penalties void on technical grounds

The US Tax Court has ruled in favour of Jesus Oropeza, the shareholder of a microcaptive called FIRM, in a case against the Internal Revenue Service, ruling that penalties imposed by the IRS were made improperly and do not stand.   16 October 2020

Accounting & tax analysis

Settle now or face even bigger fines, IRS tells micro-captive owners

The Internal Revenue Service is turning up the pressure on micro-captive insurance schemes that it deems abusive, warning those that do not settle now are likely to incur additional penalties later.   2 October 2020

Accounting & tax analysis

GAO report on abusive tax schemes perpetuates misunderstandings of captives

A GAO report was intended to shed some light the use of captives as abusive tax shelters. Instead it only risks perpetuating misunderstandings, says Bradley’s Davis Smith.   14 September 2020

Accounting & tax analysis

Minnesota set to apply procurement tax to captives

The Minnesota Department of Revenue (MDR) has proposed changes to Form IG255 that will mean individuals or businesses buying insurance directly from captives or other non-admitted insurers must report their non-admitted direct procured insurance premium tax.   4 September 2020

Accounting & tax analysis

Roundstone pays out $10m to medical group captive members

Roundstone, a Lakewood-based health insurance provider offering self- funded group captive solutions, has made more than $10 million in cash distributions to business owners across the US.   28 August 2020

Accounting & tax analysis

The lack of consistency in reporting standards and how this may hurt captives

There is very little consistency between countries when it comes to insurance tax reporting, and captives managers need to stay across the nuances to avoid trouble. Daniela Dinkova of Sovos explores some of the differences.   24 July 2020

Accounting & tax analysis

More than 20 captives bodies file key brief in IRS CIC vs IRS Supreme Court case

It relates to Notice 2016-66 that forces some captives owners to report tax details to the IRS.   24 July 2020

Accounting & tax analysis

Blow for 831(b)s as tax court confirms IRS will seek 40% penalties

While the penalty is lower in the Oropeza case, this is an exception.   24 July 2020

Accounting & tax analysis

More detail emerges on captive coalition’s amicus brief filed in CIC case

It addresses specific concerns the captive insurance industry has around recent actions by the IRS.   24 July 2020

Accounting & tax analysis

Preparing captive owners for new accounting legislation

IFRS 17 is the first international accounting standard for insurers. It represents a huge change for captive insurance companies, which will need to be well prepared to comply with the new rules, says Alex Gedge of Marsh.   13 July 2020

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