831(b) ELECTION
|
|
- Jayson Martin
- 6 years ago
- Views:
Transcription
1 A6: TAX & REGULATORY ISSUES FOR 831(b) CAPTIVES SIIA 33rd Annual National Educational Conference & Expo October 21 23, 2013 Sheraton Chicago Hotel and Towers Chicago, IL Charles J. ( Chaz ) Lavelle Ernie Achtien Bingham Greenebaum Doll LLP Captive Resources LLC 3500 National City Tower 201 E. Commerce Drive 101 S. Fifth Street Schaumburg, IL Louisville, KY / / eachtien@captiveresources.com clavelle@bgdlegal.com Jeffrey Simpson Gordon, Fournaris & Mammarella, P.A Lovering Avenue Wilmington, DE / jsimpson@gfmlaw.com 831(b) ELECTION IRC Section 831(b) provides that: Insurance companies with not greater than $1.2 million of annual written premium pay $0 income tax on insurance underwriting profits. Investment income is taxed as income to C corporation 831(b) status must be timely elected and cannot be revoked without the permission of the Secretary Exceeding $1.2 million disqualifies use for that year 2 1
2 IRC SEC. 831(b) CODE LANGUAGE 831(b) Alternative tax for certain small companies (1) In general: In lieu of the tax otherwise applicable under subsection (a), there is hereby imposed for each taxable year on the income of every insurance company to which this subsection applies a tax computed by multiplying the taxable investment income of such company for such taxable year by the rates provided in section 11(b) (2) Companies to which this subsection applies (A) In general: This subsection shall apply to every insurance company other than life (including interinsurers and reciprocal underwriters) if (i) the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $1,200,000, and (ii) such company elects the application of this subsection for such taxable year 3 IRC SEC. 831(b) CODE LANGUAGE (cont d) The election under clause (ii) shall apply to the taxable year for which made and for all subsequent taxable years for which the requirements of clause (i) are met. Such an election, once made, may be revoked only with the consent of the Secretary 4 2
3 831(b) ELECTION INVESTMENT INCOME Section 834 defines taxable investment income Certain expenses deductible under Section 834 to determine taxable investment income. TAM discusses limit on deductible investment expenses 5 831(b) ELECTION CONTROLLED GROUP RULES Insurance companies owned by related parties aggregated one $1,200,000 limit Section 1563 governs, modified by using a 50% threshold versus 80% Rules are complex and must be reviewed in each case 6 3
4 QUALIFYING FACTORS First & foremost: this is an insurance company Non tax business purpose Risk shifting and risk distribution Not a sham Insurance risk 7 TAX BENEFITS Deductibility of premiums 162/ 212 Assuming premiums are market comparable or can be valued by an actuary or underwriter Taxation of CIC s profits 831(b) provides tax exemption from underwriting profit. Federal tax on investment income only Retirement/ buy out planning Certain investments and structures could allow client to access CIC invested funds tax efficiently. Estate/Gift Taxes Possible transfer of underwriting profits and investment income to heirs tax efficiently. 8 4
5 TAX TREATMENT OF PREMIUMS Profitable business pays up to $1,200,000 in premiums each year Profitable Business CIC Premiums may be deductible under sec. 162 Downside to the election underwriting net loss is not deductible and cannot be carried over or back 9 RISK DISTRIBUTION Risk Distribution does the insurance company distribute its risk to other insureds? Rev. Ruls (50%); (12 subs or no more than 15% of total premium); (Group Captive 15% of premium, vote or stock) Harper Group and Includable Subsidiaries v. Commissioner, 96 T.C. 45 (1991): Because the CIC had at least 30% unrelated third party risk, the arrangement constituted insurance Rev. Rul : risk distribution requirement is met if CIC has 12 or more insureds (10% unrelated risk distribution insufficient; DRE disregarded for RD) Affiliated companies count, but not single member LLCs Compare to Humana Inc. v. Commissioner, 881 F.2d 247 (6 th Cir. 1989) in which sums paid to parent company s Captive Insurance subsidiary, on behalf of several dozen parent company subsidiaries, was sufficient risk distribution to constitute insurance 10 5
6 Operating Business A ACHIEVING RISK DISTRIBUTION UNDER REVENUE RULING Operating Business B Operating Business A s Captive Operating Business C Insurance Provider ( Pool ) Operating Business B s Captive Operating Business D Operating Business C s Captive Operating Business D s Captive 11 Each Operating Business will pay 50%+ of its captive premium to the Pool in return for coverage of named risks The Pool then reinsures its risk with each Operating Business Captive in the same percentage that the Operating business s premium represents Example: Assume Operating Business A pays $200k to the Pool and that $200k premium represents 2% of all premiums received by the Pool. The Pool will then pay Operating Business A s Captive $200k to reinsure 2% of the Pool s total risk (i.e. 2% of all of the other participating Operating Business s risk) ACHIEVING RISK DISTRIBUTION UNDER REVENUE RULING Related Entity 1* Related Entity 2* Related Entity 3* Related Entity 4* Captive Insurance Company ( Captive ) Related Entity 5* Related Entity 6* Related Entity 7* *Related entity must not be considered a disregarded entity Related entities pay premiums directly to the Captive for various lines of P&C insurance Each Related Entity s premium cannot be less than 5% nor more than 15% of the total premiums received by the Captive; at least 12 Related Entity s 12 6
7 WHAT DO WE REALLY MEAN BY 831(b)? Any Insurance Company that qualifies? OR Pure captive with all or most of these features Related to privately held business Covers high severity/low frequency risks Cover risks not typically addressed by commercial program Covers first party risks Facilitates estate planning or wealth transfer 13 HOW DO REGULATORS FEEL ABOUT 831(b) Do regulators: Acknowledge a class or category? Think differently about them? Treat them differently? Answer: Interview a bunch Interesting revelations 14 7
8 QUESTION: DO YOU KEEP TRACK OF THE NUMBER OF 831(b) CAPTIVES IN YOUR DOMICILE? True or False: Almost every regulator professed to have no idea how many of their captives are 831(b)! 15 QUESTION: DO YOU DISTINGUISH BETWEEN TRADITIONAL AND NON TRADITIONAL RISKS WHEN REVIEWING AN APPLICATION? True or False: Regulators were uniformly uncomfortable with nontraditional risks 16 8
9 QUESTION: DOES YOUR DOMICILE MAKE ANY EXCEPTIONS OR ACCOMMODATIONS TO ATTRACT 831(b) CAPTIVES? True or False: Every regulator said they do not, even the ones whose statutes provide some relaxed standards for small insurance companies 17 QUESTION: DO YOU SEE A REASON OR RATIONALE FOR VIEWING OR TREATING 831(b) CAPTIVES DIFFERENTLY THAN OTHERS? True or False: Only one regulator mentioned small business enterprise risk in answering this question 18 9
10 QUESTION: DO YOU ALLOW 831(b) TO BE OWNED OUTSIDE THE CORPORATE CHAIN, SUCH AS BY TRUST FOR THE BENEFIT OF THE FOUNDERS HEIRS? True or False: States that do significant 831(b) business uniformly said yes, and states that do not do significant business uniformly said they had never had to address the question 19 QUESTION: DO YOU CONSIDER IRS TAX GUIDANCE IN DECIDING WHAT TO PERMIT OR APPROVE? True or False: Every regulator professed to consider only solvency, liquidity and policy holder protection 20 10
11 QUESTION: IF A CAPTIVE S RISK WILL RUN THROUGH A POOL, DO YOU REVIEW OR EVALUATE THE POOL? True or False: Less than half of the regulators worried about the pool 21 SELECTED TOPICS Audit and Litigation Alternative Pooling Arrangements Homogeneity Insurance Risks Pricing of Premiums Investments Claims Formation and Operation 22 11
12 AUDIT AND LITIGATION IRS Audit Philosophy: For almost a decade, there has been heavy auditing of section 501(c)(15) insurance companies (totally tax exempt) Commercial and captive insurance companies have been subjected to excise tax audits in the last few years Captive insurance companies have often been audited in connection with the audit of the operating company 23 AUDIT AND LITIGATION (cont d) It appears the IRS has become much more active on a number of additional fronts Filling in the gaps in Revenue Rulings Concentration of risk in one subsidiary (i.e., 60 70% of the captive s risks are in one sister subsidiary) Abuse Salty Brine Residual Value Insurance Life Insurance Other Arrangements 24 12
13 AUDIT AND LITIGATION (cont d) CCA : disclosure of third party information in one exam can be made in another pattern evidence demonstrating that the arrangements did not take into account each participant's risk profile could be used to show that the arrangements were not insurance. For example, if the documents demonstrated that the arrangement entered into by the other taxpayers was not tailored to those taxpayers' individual situation and risk because the other taxpayers' insurance documents were identical to B 1's and C 1's documents, this pattern evidence would demonstrate the arrangement was not insurance 25 ALTERNATIVE POOLING ARRANGEMENTS Each captive insures its risks to a Pooling Company, which reinsures a pro rata portion of each risk to each respective captive RED CO. $45x of risk from Red Co. RED INSURANCE LTD. 45% of Layer 2 pooled risk YELLOW CO. $35x of risk from Yellow Co. Front 45X Red Co + 35X Yellow + 20X Blue Co YELLOW INSURANCE LTD. 35% of Layer 2 pooled risk BLUE CO. $20x of risk from Blue Co. BLUE INSURANCE LTD. 20% of Layer 2 pooled risk This slide illustrates pooling, but does not address the number of insureds or insurers needed for sufficient risk distribution
14 Alternative Pooling Arrangements (cont d) Red Operating Company insures 100% of its risks to Red Captive (related); Operating Companies Yellow, Blue, etc. also insure 100% of their respective risks to Captives Yellow, Blue, etc. respectively; each of the Captives insures with Pool Ins. Co., which retrocedes a pro rata portion to the Captives. BEFORE AFTER Red Co. Group RED INSURANCE LTD. $45x of risk from Red Co. RED INSURANCE LTD. 45% of pooled risk Yellow Co. Group YELLOW INSURANCE LTD. $35x of risk from Yellow Co. Pool Ins. Co. 45X Red Co Risks + 35X Yellow Risks + 20X Blue Co Risks YELLOW INSURANCE LTD. 35% of pooled risk Blue Co. Group BLUE INSURANCE LTD. $20x of risk from Blue Co. BLUE INSURANCE LTD. 20% of pooled risk This slide illustrates pooling, but does not address the number of insureds or insurers needed for sufficient risk distribution. 27 Alternative Pooling Arrangements (cont d) Each Captive enters into a contract with every other Captive so that each Captive bears a pro rata portion of the risks of all the insureds P ship A & Corp A Operating Entities Corporation B Operating Entity Partnership C Operating Entity CAPTIVE A* CAPTIVE B* CAPTIVE C* Contractual Pool; no captive exceeded 15% This slide illustrates pooling, but does not address the number of insureds or show the number of insurers resulting in risk distribution
15 ALTERNATIVE POOLING ARRANGEMENTS The Pool reinsures a pro rata portion of all its risks to each of the captives The Pool reinsures 100% of a layer of coverage (say, the first $100,000) of Operating Company A s risks to related Captive A; and a pro rata portion of the remaining risks (say $100,000 to $250,000) to each Captive The Pool reinsures a pro rata portion of all its risks of a layer coverage (say the first $100,000) to the captives; and 100% of an upper layer (say $100,000 to $250,000) of Operating Company A s risks to related Captive A Each Operating Company insures 49% of its risks with the Captive and 51% with the Pool, which reinsures a pro rata share with all captives 29 HOMOGENEITY Do the unrelated risks have to be the same as the related party risks? Are the percentages (50% unrelated; 12 subsidiaries between 5% and 15% of the premiums) computed on a line of coverage by line of coverage basis, or on a captive wide basis? 30 15
16 INSURANCE RISKS Must be a risk (possibility it will occur) Cannot be an eventuality (may not occur) Not an investment risk Not a business risk Not much authority relating to business risk Embedded and extended warranties Prepaid income Residual value insurance 31 INSURANCE RISKS (cont d) Fire, flood, windstorm, workers compensation, general liability, etc. Cyber risk? Loss of key customer, loss of key supplier? Bad debt expense? 32 16
17 PRICING OF PREMIUMS Market based premiums Actuarially computed premiums Underwriter determined premiums 33 INVESTMENTS Sufficient liquidity to pay claims as and when they come due Investment standards placed upon commercial insurance carriers Loan backs to insureds; their affiliates? Life insurance policies? 34 17
18 CLAIMS Make claims if loss occurs Pay claims if they are valid Consequence of no related losses; no unrelated losses 35 FORMATION AND OPERATION Non-tax Business Purpose Capitalization (Surplus Notes? Letters of Credit?) No Guarantees Regulation Policy Terms Reserves Separate Operation and Corporate Formalities State Tax/Self Procurement/Dodd Frank 36 18
19 QUESTIONS Charles J. ( Chaz ) Lavelle Bingham Greenebaum Doll LLP 3500 National City Tower 101 S. Fifth Street Louisville, KY / clavelle@bgdlegal.com Ernie Achtien Captive Resources LLC 201 E. Commerce Drive Schaumburg, IL / eachtien@captiveresources.com Jeffrey Simpson Gordon, Fournaris & Mammarella, P.A Lovering Avenue Wilmington, DE / jsimpson@gfmlaw.com 19
Best Captive Practices for 831(b)s Do Them Right or Don t Do Them At All
Best Captive Practices for 831(b)s Do Them Right or Don t Do Them At All Webcast provided by ICCIE Derek Freihaut Charles J. (Chaz) Lavelle Presenters: Joe LaMantia III Patrick Theriault Monday, March
More informationCAPTIVE INSURANCE TAXES: Is the Strike Zone Narrowing. GARY BOWERS Johnson Lambert LLP Raleigh, NC
CAPTIVE INSURANCE TAXES: Is the Strike Zone Narrowing GARY BOWERS Johnson Lambert LLP Raleigh, NC 919.719.6411 gbowers@johnsonlambert.com Preview We are breaking this into three parts: 1) Brief Tax Review
More informationSection 831(b) Captive Nuances and Best Practices, Tax Risk Distribution/Sharing and. Accounting Risk Transfer Rules
ACI s 2 nd Advanced Forum on Captive Insurance Section 831(b) Captive Nuances and Best Practices, Tax Risk Distribution/Sharing and April 24-25, 2014 Accounting Risk Transfer Rules Anne Marie Towle Senior
More informationCAPTIVE INSURANCE: Primer and Federal Tax Overview. November 2009
CAPTIVE INSURANCE: Primer and Federal Tax Overview November 2009 Overview 1. Types of Captives 2. Captive Insurance Domiciles: Foreign versus Domestic Jurisdiction Considerations 3. Professionals Required
More informationPooling in Microcaptives
Pooling in Microcaptives 2018 World Captive Forum January 31 - February 2, 2018 Fort Lauderdale, FL #WorldCaptiveForum Pooling in Small Captives Jeremy Huish Artex Risk Solutions Jeremy_Huish@artexrisk.com
More informationTCIA Tennessee Captive Insurance Association, Inc.
Edward K. White Charles Chaz Lavelle Gary Bowers 1320 Main Street, 17 th Floor Senior Partner Partner Columbia, SC 29201 Bingham Greenebaum Doll LLP Johnson Lambert, LLP Direct:502-587-3557 ed.white@nelsonmullins.com
More informationCaptive College: Fundamentals and Development Issues
Captive College: Fundamentals and Development Issues 2018 World Captive Forum January 31 February 2, 2018 Fort Lauderdale, FL #WorldCaptiveForum The Faculty Hugh Rosenbaum Jeff Kenneson Maria Sheffield
More informationEVOLUTION IN GROUP CAPTIVES
EVOLUTION IN GROUP CAPTIVES DCIA Fall Forum November 11-12, 2015 Chase Center on the Riverfront Wilmington, DE Jeffrey K. Simpson Gordon, Fournaris & Mammarella, P.A. 1925 Lovering Avenue Wilmington, DE
More informationCaptive Tax Developments
Captive Tax Developments Kentucky Captive Association 2016 Educational nference Thomas J. Munninghoff, Partner Munninghoff, Lange & mpany tmunninghoff@ml-co.com Charles J. (Chaz) Lavelle, Partner Bingham
More informationCaptive Insurance Tax Panel
Captive Insurance Tax Panel Thomas M. Jones McDermott Will & Emery LLP Chicago, Illinois Phone: (312) 984-7536 Email: tjones@mwe.com Daniel Kusaila Saslow, Lufkin & Buggy, LLP Avon, Connecticut (860) 470-2122
More information831(b) Captives and Tax Issues
831(b) Captives and Tax Issues September 16, 2014 Presented by: David J. Slenn Quarles & Brady LLP (239) 659.5061 david.slenn@quarles.com Chicago Indianapolis Madison Milwaukee Naples Phoenix Tampa Tucson
More informationTAX CONSIDERATIONS FOR TAXABLE ENTITIES
TAX CONSIDERATIONS FOR TAXABLE ENTITIES Mike Domanski Partner Honigman Miller Schwartz and Cohn LLP T.C. Leshikar Partner, Tax PwC Cayman Islands AGENDA Insurance vs. Non-Insurance Offshore Federal Tax
More informationInsurance Contracts for 831(b) Enterprise Risk Captives Policies and Pooling Agreements
Insurance Contracts for 831(b) Enterprise Risk Captives Policies and Pooling Agreements Jeffrey K. Simpson John R. Capasso Brian Johnson Gordon, Fournaris & Mammarella, P.A. Captive Planning Associates,
More informationPC2: Introduction to Captives
PC2: Introduction to Captives Martin Eveleigh Chairman, Atlas Insurance Management Kirk Mooneyham Managing Director, Wilmington Trust SP Services, Inc. What is a Captive Insurance Company? A captive insurance
More informationC5: THE EVOLVING USE OF ENTERPRISE RISK CAPTIVES (ERCs) SIIA NATIONAL CONFERENCE
C5: THE EVOLVING USE OF ENTERPRISE RISK CAPTIVES (ERCs) SIIA NATIONAL CONFERENCE Jeffrey K. Simpson Attorney Gordon, Fournaris & Mammarella, PA 1925 Lovering Avenue Wilmington, DE 19806 302-652-2900 JSimpson@Gfmlaw.com
More information831(b) Small Captive Insurance Companies
831(b) Small Captive Insurance Companies Presented by: Robert N. Greenberger, CPA Angela T. Dotson, CPA T. Seth Peabody, CPA Habif, Arogeti & Wynne, LLP Captive Insurance Companies What is a captive insurance
More informationTopics of Discussion. Patrick Theriault Managing Director Strategic Risk Solutions Ph
Patrick Theriault Managing Director Strategic Risk Solutions Ph. 802.861.2630 patrick.theriault@strategicrisks.com Melissa Hancock Regional Manager Strategic Risk Solutions District of Columbia & Delaware
More informationCaptive 101-Back to the Basics
Captive 101-Back to the Basics Sean Rider, Willis Global Captive Practice Scott Spencer, Stevens & Lee Moderator: Anne Marie Towle, Willis Global Captive Practice Presentation Topics Captive Primer Feasibility
More informationCaptive Insurance. A Risk Management Solution for Businesses
Captive Insurance A Risk Management Solution for Businesses The Concept Captive insurance is a tool to manage the insurance risks of operating a business, while providing the owners of the business substantial
More informationNavigating the Fundamentals of Captive Taxation
Navigating the Fundamentals of Captive Taxation Matt Gravelin-Johnson Lambert Derick White-Strategic Risk Solutions Jeff Johnson- Primmer Piper Eggleston and Cramer, PC March 10, 2014 from 1:30-2:30pm
More informationCAPTIVE INSURANCE BEST PRACTICES AND THE DEFENSE OF IRS ATTACKS
CAPTIVE INSURANCE BEST PRACTICES AND THE DEFENSE OF IRS ATTACKS Presented by: Steven Miller National Director of Tax and John Dies Managing Director Tax Controversy Services 4 BILLION IN CREDITS & INCENTIVES
More informationHistory of Captives. The Internal Revenue Code does not defi ne
History of Captives. The Internal Revenue Code does not defi ne insurance. As a result, taxpayers and the Internal Revenue Service have been litigating about what is, and what is not, deductible as insurance
More informationCaptive Insurance. AICPA Real Estate and Construction Conference 12/9/16. Presented by: Kevin Atkinson, Founder
Captive Insurance AICPA Real Estate and Construction Conference 12/9/16 www.montpelieradvisors.com Presented by: Kevin Atkinson, Founder 1 SEMINAR TOPICS Captives for Risk Financing Enterprise Risk Captive
More informationCaptive Insurance Companies after Avrahami: What Happens Next?
Captive Insurance Companies after Avrahami: What Happens Next? Insurance Companies Committee ABA Tax Section San Diego Feb 9, 2018 Kacie Dillon, Woolston & Tarter P.C., Phoenix, AZ Chaz Lavelle, Bingham
More informationArticle from Taxing Times. October 2017 Volume 13, Issue 3
Article from Taxing Times October 2017 Volume 13, Issue 3 In the Beginning A Column Devoted to Tax Basics The Taxation of Reinsurance Transactions By Jean Baxley and Eli Katz Reinsurance involves the transfer
More informationPolicy-Writing for Private Enterprise Risk Captives
Policy-Writing for Private Enterprise Risk Captives Andrew Rennick, Esquire Associate Gordon, Fournaris & Mammarella, P.A. 1925 Lovering Avenue Wilmington, DE 19806 302-652-2900 (telephone) ARennick@gfmlaw.com
More informationCaptive insurance companies ( captives ) allow taxpayers with large risk exposures
Insurance Perspectives Effects of the Tax Cuts and Jobs Act of 2017 on Captive Insurance Companies By Thomas Cyr, Sheryl Flum and William Olver * Captive insurance companies ( captives ) allow taxpayers
More information101 Tax Update The Good, Bad, and Ugly
101 Tax Update The Good, Bad, and Ugly Michael Serricchio, Senior VP, Marsh Captive Solutions Fred Krull, Principal, EY Ernie Achtien, CFO, Captive Resources Agenda Captives trends, value drivers and benchmarking
More informationSeries LLCs and State Tax Implications
FLORIDA INSTITUTE OF CPAS 2017 MEGA CPE CONFERENCE Series LLCs and State Tax Implications June 15, 2017 Presented by: Jeff Simpson 302-521-6191 jsimpson@gfmlaw.com Presented by: Jimmy Long 205-521-8626
More informationThe Evolving Tax Environment for Captive Insurance Companies
The Evolving Tax Environment for Captive Insurance Companies Beckett Cantley, JD, LL.M. Law Professor at John Marshall Law School The Atlanta Law Group F. Hale Stewart JD, LL.M. The Law Office of Hale
More informationCaptives/RRGs 101-the Basics of Alternative Risk Transfer
Captives/RRGs 101-the Basics of Alternative Risk Transfer Sean Rider- Willis Captive Consulting Practice Jules Rousseau-Arent Fox LLP David Provost-State of Vermont Monday, March 14th - 1:30pm 3:00pm Presentation
More informationCommercial Insurance and Captive Insurance Industry: Commonly Accepted Practices
Commercial Insurance and Captive Insurance Industry: Commonly Accepted Practices January 31, 2019 Commercial Insurance and Captive Insurance Industry: Commonly Accepted Practices The Captive Insurance
More informationA&H Captive Taxation: Opportunities and Obstacles
0 Accident & Health (A&H) Captives are at the crossroads of competing considerations: Desire to fund the A&H exposure Desire to fund efficiently Variable and rising health care costs Patient Protection
More informationOffshore Cell Captive World (>20) Protected Cell Captives 101. Cell Company Structure. Segregated Accounts Company (SAC) Separate Accounts Company
Protected Cell Captives 101 Self-Insurance Institute of America 27th Annual Educational Conference and Expo October 29 November 1, 2007 Sheraton Chicago Hotel and Towers Chicago, IL www.mwe.com Tom Jones,
More informationDODD FRANK AND CAPTIVES
DODD FRANK AND CAPTIVES Delaware Captive Insurance Association 2014 DCIA Spring Forum Hotel du Pont Wilmington, DE May 13, 2014 Paul Phillips III Ernst & Young LLP 155 N. Wacker Drive Chicago, IL 60606
More informationThe Purpose of a Captive Captives vs. Traditional Insurance Structuring a Captive Determining the Feasibility and Goals of a Captive Domicile
The Purpose of a Captive Captives vs. Traditional Insurance Structuring a Captive Determining the Feasibility and Goals of a Captive Domicile Selection Partner Selection Operating a Captive Captive Advantages
More informationSEGREGATED CELL CAPTIVES. Arthur D. Perschetz, Esquire Kilpatrick Stockton LLP
SEGREGATED CELL CAPTIVES Arthur D. Perschetz, Esquire Kilpatrick Stockton LLP October 22, 2009 Overview What is a Cell Captive What s in a Name Where in the World Who Uses Cells The District of Columbia
More information26th Annual Health Sciences Tax Conference
26th Annual Health Sciences Tax Conference Partnerships and joint ventures: M&A, current developments and JVs with exempt organizations December 7, 2016 Disclaimer EY refers to the global organization,
More informationTHE USE OF ASSET PROTECTION TRUSTS FOR TAX PLANNING PURPOSES
THE USE OF ASSET PROTECTION TRUSTS FOR TAX PLANNING PURPOSES Presented by: Michael M. Gordon Gordon, Fournaris & Mammarella, P.A. 1925 Lovering Avenue Wilmington, Delaware 19806 302-652-2900 mgordon@gfmlaw.com
More informationRev. Rul , I.R.B. 984 (12/30/2002)
Rev. Rul. 2002-89, 2002-52 I.R.B. 984 (12/30/2002) Part I Section 162. Trade or Business Expenses 26 CFR 1.162-1: Business Expenses. (Also sections 801, 831.) Captive insurance. This ruling considers circumstances
More informationP1: PRE CONFERENCE SESSION: Introduction to Captive Insurance Monday, October 21, 2013, 3:00 pm to 5:00 pm
P1: PRE CONFERENCE SESSION: Introduction to Captive Insurance Monday, October 21, 2013, 3:00 pm to 5:00 pm Kevin Doherty Partner Nelson Mullins Riley & Scarborough, LLP Christopher L. Kramer Director of
More informationDevelopments Affecting Captives and Non-traditional Risk Transfer Arrangements
Developments Affecting Captives and Non-traditional Risk Transfer Arrangements Art Koritzinsky, Marsh & McLennan Companies Frederick Krull, Ernst & Young LLP P. Bruce Wright, Dewey & LeBoeuf LLP Jean Baxley,
More informationGROWING CAPTIVES. Small. Designated AGGRESSIVELY, Despite Criticism by Karrie Hyatt
Small CAPTIVES Designated 831(b) GROWING AGGRESSIVELY, Despite Criticism by Karrie Hyatt 6 July 2014 The Self-Insurer Self-Insurers Publishing Corp. All rights reserved. S mall captives that opt for the
More informationUTILIZATION OF CAPTIVES TODAY
UTILIZATION OF CAPTIVES TODAY November 20, 2015 Prepared by: Julie Patel Vice President Marsh Captive Solutions Utilization of Captives Today Objectives of Discussion 1. Captive Basics 2. The Process of
More informationThe Intersection of Subchapter K and Consolidated Returns
The Intersection of Subchapter K and Consolidated Returns Affiliated & Related Corporations Committee American Bar Association Tax Section Greg Fairbanks Grant Thornton LLP Washington, DC E.J. Forlini
More informationU.S. INTERNAL REVENUE CODE SECTION 1031 TAX DEFERRED LIKE KIND EXCHANGES. This outline has been modified to reflect the recent changes in the tax law.
U.S. INTERNAL REVENUE CODE SECTION 1031 TAX DEFERRED LIKE KIND EXCHANGES This outline has been modified to reflect the recent changes in the tax law. I. SECTION 1031 LIKE KIND EXCHANGE A. What is a 1031
More informationTable of Contents. Chapter 2 What is Insurance? Part I: Introduction... 7 (a) Background... 7
Table of Contents Chapter Page Chapter 1 Why Are There Separate Tax Rules For Insurance Companies?........................................ 1 (a) The unique characteristics of insurance companies...............
More informationArticle from: Taxing Times. May 2014 Volume 10, Issue 2
Article from: Taxing Times May 2014 Volume 10, Issue 2 T 3 : TAXING TIMES TIDBITS Susan J. Hotine is a partner with the Washington, D.C. law firm Scribner, Hall & Thompson, LLP and may be reached at shotine@
More informationCVS CAREMARK INDEMNITY LTD. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 AND 2016 (expressed in United States dollars) 1. Operations CVS Carema
NOTES TO THE FINANCIAL STATEMENTS 1. Operations CVS Caremark Indemnity Ltd. ("The Company"), formerly known as Twinsurance Limited, was incorporated in Bermuda on March 27, 1980, and is a wholly owned
More informationSENATE TAX REFORM PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Senate Finance Committee s version of the Tax Cuts and Jobs Act bill, as approved by the Senate Finance Committee on November
More informationHAWAII CAPTIVE INSURANCE COUNCIL
HAWAII CAPTIVE INSURANCE COUNCIL TAX UPDATE 2013 NOVEMBER 5 8, 2013 HAPUNA BEACH PRINCE HOTEL KOHALA COAST OF HAWAII ALICE WEST KARL N. HUISH P. BRUCE WRIGHT, ESQ. DIRECTOR OF INSURANCE PRESIDENT, CAPTIVE
More informationTHE 20% TAX DEDUCTION FOR PASS-THROUGH ENTITIES EXPLAINED By. Keith C. Durkin (LL.M. Tax)
THE 20% TAX DEDUCTION FOR PASS-THROUGH ENTITIES EXPLAINED By. Keith C. Durkin (LL.M. Tax) kdurkin@broadandcassel.com (407) 839-4289 On December 22, 2017, President Trump signed the new tax act officially
More informationA Captive Primer: What they are and how they work. Educate Evaluate Elevate
A Captive Primer: What they are and how they work Educate Evaluate Elevate Presentation Objectives History of captives & what they are How captives are used & what makes a good prospect The Captive Wrap
More informationOverview of Tax Court Representative Cases:
Litigating Insurance Tax Cases Overview of Tax Court Representative Cases: A View from The Bench with Judges Mark V. Holmes and Albert G. Lauber May 11, 2018 Susan Seabrook Partner, (US) LLP 2018 (US)
More informationAlternative Regulatory Structures for Pools What If Being A JPA Isn t Enough?
Alternative Regulatory Structures for Pools What If Being A JPA Isn t Enough? Patrick Theriault, Managing Director, SRS Shawn Bubb, Director of Insurance Services, MSGIA Joel Kress, Underwriting Manager,
More informationAN ACT IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
AN ACT Codification District of Columbia Code 2001 Supp. IN THE COUNCIL OF THE DISTRICT OF COLUMBIA To permit the chartering and operation of captive insurance companies in the District of Columbia; to
More informationCaptive Insurance Arrangements For Small Companies
Captive Insurance Arrangements For Small Companies Ronald H. Snyder ZERMATT INSURANCE GROUP, INC. 101 Convention Center Dr. Ste P-109 Las Vegas, NV 84109 What is a Captive Insurance Company? A Captive
More informationFederal Bar Association March 6, 2015 Notice : Selected Issues
Federal Bar Association March 6, 2015 Notice 2014-52: Selected Issues Private Sector Chris Bowers, Skadden Arps Joe Calianno, Grant Thornton Scott Levine, Jones Day Government Panelists Brenda Zent, Dept.
More informationWorkshop 9 Maximum Deductions
Workshop 9 Maximum Deductions Lauren Okum, MSPA Kevin J. Donovan, CPA, MSPA DC Plans Elective Deferrals PLR 201229012 an employee who is treated as benefitting (for 410(b) purposes) under a section 401(k)
More informationSec Tax On Insurance Companies Other Than Life Insurance Companies
Sec. 831. Tax On Insurance Companies Other Than Life Insurance Companies 831(a) General Rule Taxes computed as provided in section 11 shall be imposed for each taxable year on the taxable income of every
More informationGross Receipts Taxes Who Handles Them?
Gross Receipts Taxes Who Handles Them? Jeff McGhehey Senior Manager Indirect Tax The Home Depot 2455 Paces Ferry Rd., B12 Atlanta, GA 30339 Phone: (770) 384-3417 Fax: (770) 384-3007 Jeff_McGhehey@ HomeDepot.com
More informationA Little of This, A Little of That: Cherry- Picking Gains and Losses in Transactions
A Little of This, A Little of That: Cherry- Picking Gains and Losses in Transactions Moderator: Panelists: Michael Mollerus, Davis Polk LLP Lisa Fuller, Chief, Branch 5, Office of Associate Chief Counsel
More informationI. SUMMARY CONCLUSIONS.
Terri A. Merriam, J.D. tamerriam@merriamandassociates.com SideCars, Inc. 532 South Main Street Suite Z Joplin, MO 64801 You requested an opinion letter that will assist business owners in assessing the
More informationManager Federal Insurance Tax. Contact:
John Forni Grant Thornton LLP Managing Director National Insurance Tax Practice Leader Contact: John.Forni@us.gt.com Peter Tofilski Grant Thornton LLP Manager Federal Insurance Tax Contact: Peter.Tofilski@us.gt.com
More informationANGUILLA FINANCIAL SERVICES COMMISSION
ANGUILLA FINANCIAL SERVICES COMMISSION GUIDELINES FOR AUDIT EXEMPTION APPLICATIONS BY CERTAIN CAPTIVE INSURERS (Section 8(5) of the Insurance Act) (Issued under Section 61 of the Financial Services Commission
More informationTax Cuts and Jobs Act of 2017 International Tax Provisions and Provisions Affecting Exempt Organizations
Tax Cuts and Jobs Act of 2017 International Tax Provisions and Provisions Affecting Exempt Organizations By Robert E. Ward* Robert E. Ward outlines the international tax provisions and provisions affecting
More informationTitle Slide. Second Header
Title Slide Second Header Moderator Roger Gillett Why Companies Form Captives Phil Barnes Captive Tax Update Rick Irvine Latest Ideas In Captive Use Scott Gemmell How To Form A Bermuda Captive Neil Horner
More informationIRC 751 "Hot Assets": Calculating and Reporting Ordinary Income in Disposition of Partnership or LLC Interests
FOR LIVE PROGRAM ONLY IRC 751 "Hot Assets": Calculating and Reporting Ordinary Income in Disposition of Partnership or LLC Interests WEDNESDAY, JULY 26, 2017, 1:00-2:50 pm Eastern IMPORTANT INFORMATION
More informationTax Reform: Deep Dive on Application to E&C Engineering and Construction Conference June 21, 2018
Tax Reform: Deep Dive on Application to E&C 2018 Engineering and Construction Conference June 21, 2018 Business Interest Expense Limitations Copyright 2018 Deloitte Development LLC. All rights reserved.
More informationAmerican Bar Association Section of Taxation Section 2011 Midyear Meeting. Hot Topics in Partnerships January 21, 2011
American Bar Association Section of Taxation Section 2011 Midyear Meeting January 21, 2011 Panelists Paul F. Kugler, KPMG LLP Dawn Duncan, Ernst & Young LLP Beverly Katz, Special Counsel to the Associate
More informationThe Feasibility Process
The Feasibility Process Moderator: Derek Freihaut Principal and Consulting Actuary; Pinnacle Actuarial Resources Panelists: Patrick Theriault Managing Director; Michael Meehan Consultant; Milliman Strategic
More informationABA: Safe Harbor Parking Like-Kind Exchanges
ABA: Safe Harbor Parking Like-Kind Exchanges Robert D. Schachat and Glenn Johnson Ernst & Young LLP January 22, 2011 Disclaimer Ernst & Young refers to the global organization of member firms of Ernst
More informationWorkshop #53: Deduction Limits for Defined Benefit and Combo Plans
Workshop #53: Deduction Limits for Defined Benefit and Combo Plans Michael B. Preston, FSPA Preston Actuarial Services, Inc. Angela Barclay, EA Pension Benefits Unlimited, Inc. Overview of Presentation
More informationSC REVENUE RULING #14-6. All previous documents and any oral directives in conflict herewith.
State of South Carolina Department of Revenue 300A Outlet Pointe Blvd., Columbia, South Carolina 29210 P.O. Box 125, Columbia, South Carolina 29214 SC REVENUE RULING #14-6 SUBJECT: Angel Investor Credit
More informationPRIVATE RULING atty fees to class counsel.txt PRIVATE RULING PRIVATE RULING
PRIVATE RULING 200518017PRIVATE RULING 200518017 "This document may not be used or cited as precedent. Section 6110(j)(3) of the Internal Revenue Code." Section 61 -- Gross Income Defined; Section 6041
More informationSENATE TAX REFORM PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Senate s version of the Tax Cuts and Jobs Act, as approved by the Senate on December 2, 2017. This chart highlights only some
More informationCaptives and the Management of Risk Table of Contents
Captives and the Management of Risk Table of Contents Captives and the Management of Risk (3rd ed.) Preface o Acknowledgement o About the Author o Frequently Asked Questions (CAPFAQs) Addressed in this
More informationTax Reform: Impact of International Provisions on Insurance Companies
Tax Reform: Impact of International Provisions on Insurance Companies 2018 Mid Year ABA Tax Section Meeting, Insurance Companies February 9, 2018, 3:30 4:30 p.m. Moderator: Clarissa Potter, KPMG, New York,
More informationImportant Developments in the Federal Income Taxation of S Corporations
American Bar Association Section of Taxation S Corporation Committee Important Developments in the Federal Income Taxation of S Corporations Boca Raton, Florida January 21, 2011 Dana Lasley Tax Director
More informationCaptive Insurance Overview
Captive Insurance Overview What is a Captive? Property & Casualty Insurance Company Formed to cover the unique risks of an operating company Provides coverage for specialized risks which may not be available
More informationP. Bruce Wright. P: E:
ATTORNEY BIOGRAPHY P. Bruce Wright Partner New York P: +1.212.389.5054 E: brucewright@eversheds-sutherland.com Education LL.M., Georgetown University Law Center J.D., cum laude, Brooklyn Law School B.S.,
More informationFEDERAL INCOME TAX ISSUES
FEDERAL INCOME TAX ISSUES Paul H. Phillips III, Partner, Ernst & Young LLP Bruce Wright, Partner, Eversheds Sutherland (US) LLP Tom Jones, Partner, McDermott Will & Emery LLP AGENDA Insurance Tax Concepts
More informationDistrict court concludes that taxpayer s refund suit, relating to the carryback of a deduction for foreign taxes, was untimely
IRS Insights A closer look. In this issue: District court concludes that taxpayer s refund suit, relating to the carryback of a deduction for foreign taxes, was untimely... 1 IRS issues Chief Counsel Advice
More informationThe True Value Proposition of Captive Insurance Subsidiaries
The True Value Proposition of Captive Insurance Subsidiaries ABC s of Captive Insurance - SIIA Richard W. Wright, SVP, Willis Captive Consulting Practice Richard (Dick) Goff, Managing Member, The Taft
More informationINDIANA. IT-20 CORPORATE Income Tax Booklet
INDIANA 2 0 1 7 IT-20 CORPORATE Income Tax Booklet www.intax.in.gov Effective Jan. 1, 2013 Indiana businesses must report and pay sales and withholding taxes electronically ALL businesses in Indiana must
More information44th Annual Chesapeake Tax Conference September 16th, IRS Audit Update
44th Annual Chesapeake Tax Conference September 16th, 2013 IRS Audit Update Stuart M. Schabes, Esquire Ober, Kaler, Grimes & Shriver smschabes@ober.com 410-347-7696 Overview IRS FY 2012 STATS Individuals
More informationH.563. An act relating to captive insurance laws and accreditation standards. It is hereby enacted by the General Assembly of the State of Vermont:
2014 Page 1 of 7 H.563 An act relating to captive insurance laws and accreditation standards It is hereby enacted by the General Assembly of the State of Vermont: * * * Dormant Captive Insurance Companies
More informationRISK POOLING KEY CONSIDERATIONS FOR GROUP AND PURE CAPTIVES
RISK POOLING KEY CONSIDERATIONS FOR GROUP AND PURE CAPTIVES Doug MacGinnitie, River Oak Risk, LLC Phyllis Ingram, Carr Riggs & Ingram Rick Kohan, FCAS, MAAA, NCDOI AGENDA Introductions Risk Pooling: Origin,
More informationRE: IRS REG Guidance Related to Section 951A (Global Intangible Low-Taxed Income)
Charles P. Rettig Commissioner Internal Revenue Service 1111 Constitution Avenue, NW Washington, DC 20044 RE: IRS REG-104390-18 - Guidance Related to Section 951A (Global Intangible Low-Taxed Income) Dear
More informationOctober 5, Charles P. Rettig Commissioner Internal Revenue Service 1111 Constitution Avenue, NW Washington, DC 20044
October 5, 2018 Charles P. Rettig Commissioner Internal Revenue Service 1111 Constitution Avenue, NW Washington, DC 20044 RE: IRS REG-104226-18 - Guidance Regarding the Transition Tax Under Section 965
More informationBack To The Future: The Insurance Industry And Tax Reform
Portfolio Media. Inc. 111 West 19 th Street, 5th Floor New York, NY 10011 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Back To The Future: The Insurance Industry
More informationSupplemental Background Material. Course CFE 3. Reinsurance. (Passing grade for this exam is 74%)
Supplemental Background Material Course (Passing grade for this exam is 74%) Please note that this study guide is a tool for learning the materials you need to effectively study for this examination. As
More informationCONFERENCE AGREEMENT PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Conference Agreement version of the Tax Cuts and Jobs Act, as made available on December 15, 2017. This chart highlights only
More information[ p] Published December 17, 2004
[4830-01-p] Published December 17, 2004 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 TD 9164 RIN 1545-BC33 Prohibited Allocations of Securities in an S Corporation AGENCY: Internal
More informationIncome Tax Planning for IRAs & Qualified Plans
Income Tax Planning for IRAs & Qualified Plans Robert S. Keebler, CPA/PFS, MST, AEP Keebler & Associates, LLP Foundation Concepts Tax Brackets 2 Foundation Concepts General Income Tax Treatment Tax Deduction
More informationProducer Guide For producer use only. Not for distribution to the public.
Business Su c c e s s i o n Pl a n n i n g with C Corporations Producer Guide For producer use only. Not for distribution to the public. 1 Business Succession Planning with C Corporations With proper planning,
More informationTHE TAX CUTS AND JOBS ACT: CHOICE OF ENTITY ISSUES. Presented by: Bryan E. Slone & Jeffery R. Schaffart January 10, 2018
THE TAX CUTS AND JOBS ACT: CHOICE OF ENTITY ISSUES Presented by: Bryan E. Slone & Jeffery R. Schaffart January 10, 2018 Speaker Introductions Bryan E. Slone 402.343.3897 bryan.slone@koleyjessen.com Jeffery
More informationArticle from. Taxing Times. March 2016 Volume 12 Issue 1
Article from Taxing Times March 2016 Volume 12 Issue 1 Tax Contours of Insurance Refined: RVI v. Commissioner By Jean Baxley and Sheryl Flum In September 2015, the Tax Court issued its opinion blessing
More informationInternal Revenue Service
Internal Revenue Service Number: 200329021 Release Date: 7/18/2003 Index: 1031.00-00 Department of the Treasury P.O. Box 7604 Ben Franklin Station Washington, DC 20044 Person to Contact: Telephone Number:
More informationA. Cash Position - Regulatory Authority to Determine Cash Positions and Non-Cash Positions and Relevant Examples
December 14, 2017 Chip Harter Deputy Assistant Secretary (International Tax Affairs) U.S. Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Dear Mr. Harter, USCIB 1 is writing
More information