Taxation
Fifth Circuit Holds for IRS in Swift Captive Insurance Case
The Fifth Circuit affirmed the Tax Court’s decision in Swift v. Commissioner, rejecting the captives' risk distribution arguments and finding flaws in the pooling arrangement. The court also upheld 20 percent Internal Revenue Service (IRS) penalties for negligence and substantial understatement under section 6662 of the Internal Revenue Code. Learn More
831(b) Institute Urges Repeal of IRS Rule on Micro-Captives
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. Learn More
Tax Compliance and Structuring Tips for Captive Insurance Companies
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
CIC Services Files Second Lawsuit Against IRS over Micro-Captive Rules
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
Tax Court Again Considers an IRC Section 831(b) Case and Rules in Favor of the Internal Revenue Service
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
Oklahoma Insurance Department Revises Captive Premium Tax Forms Following Reporting Error
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 IRS's 831(b) Regulations: Industry Concerns and Legislative Responses
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