The IRS after more than a year’s delay has provided small insurers with guidance on how to obtain a tax exemption under a law that was revised to prevent abuses by wealthy individuals.

Under the IRS’ ruling the exemption applies only to nonlife insurance companies with “gross receipts” for the taxable year that do not exceed $600,000, if premiums make up more than 50 percent of gross receipts. Reinsurance recoverables are not counted as gross receipts.

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