Showing posts with label Section 79. Show all posts
Showing posts with label Section 79. Show all posts
Monday, June 11, 2018
Monday, May 21, 2018
Captive Insurance Alert!!!
The Captive Insurance Companies Association ("CICA"), a trade association representing the captive insurance industry, has issued a statement on section 831(b) companies with cautionary language:
The traditional captive insurance company industry and CICA are extremely concerned about the misuse of small captives utilizing the IRC 831(b) election and the attendant publicity about "captives" being a tax avoidance device. Although there is nothing wrong with the utilization of the 831(b) election when a small captive insurance company is truly engaged in insuring the risk of its parent company/owner(s), the traditional captive insurance industry strongly opposes the utilization of small 831(b) captives primarily for tax sheltering purposes.
In simple language, do 831(b)s right or don't do them at all!
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