Groups representing captive insurers made a concerted appeal to the Internal Revenue Service asking it to withdraw a proposal that would change the way captives deduct losses, saying that the ruling is contrary to existing legal precedent.
The IRS' proposed regulation would require captives to deduct losses on a cash basis rather than an accrual basis by changing the existing treatment of inter-company transactions to match rules governing manufacturing companies not those governing property-casualty insurance companies.
Two groups, the Coalition for Fairness to Captive Insurers, which was set up to contest the rule, and the Vermont Captive Insurance Association, in comment letters to the IRS, asked the IRS and the Treasury Department to hold a public hearing on the issue.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
