Florida Citizens Property Insurance Corporation, the state insurer of last resort, said it received more than $168 million from the Internal Revenue Service as part of an agreement declaring Citizens' predecessor a tax-exempt entity.
"We received this money from the IRS to settle a court battle that began when the Florida Windstorm Underwriting Association (FWUA), a predecessor of Citizens, sued the Internal Revenue Service for a refund of previously paid federal income taxes," said Perry Cone, general counsel, in a statement.
Citizens' announcement came on Tuesday--the day after it received the funds. It said the total IRS payment was more than $168 million and includes interest.
The dispute began when the IRS ruled that the FWUA was not a tax-exempt entity and was subject to federal income tax obligations.
Citizens was created by the Florida Legislature in 2002 as a tax-exempt, public, not-for-profit corporation, and its tax status was never an issue, Mr. Cone said. The refund money will be used to pay future claims and expenses, he added.
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