From: Captive International
Captives, especially small captive owners, need to keep a close eye on the latest decisions in US courts that might impact them.
That was a key finding from a panel session entitled ‘Tax: The News You Need’ at the Captive Insurance Companies Association 2024 annual conference. The participants were: Bailey Roese, partner, Dentons Bingham Greenebaum; Daniel Kusaila, partner, Crowe; and Mikhail Raybshteyn, partner, EY.
The panel addressed the issue that from inception, captive owners and advisors need to be intimately aware of the impact of federal and state taxes on their captives. Although there has not been any general captive specific legislation and / or action, attention still needs to be paid to this area.
The panel looked at the recent case of Keating v Comm’r (Jan 4, 2024) which used Risk Retention, a captive based in Anguilla that had a 953d election and an 831 b election. The panel questioned briefly if the IRS could be going after 953d elections next, but concluded that more information was needed.