The Internal Revenue Service announced it has withdrawn a proposed regulation that if enacted could have driven captive insurance formations offshore, according to captive experts.
The action followed an onslaught of taxpayer comments, sought by the IRS by Dec. 27, 2007, as well as industry lobbying efforts.
The regulation, 1.1502-13(e), proposed on Sept. 28, 2007, would have eliminated the tax deduction for reserves established by captive insurers for insurance sold to affiliates, if the insureds and insurer file in the same consolidated return (See NU, Jan. 21, 2008).
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.
