Duane Castles

The Coalition for Fairness to Captive Insurers, CICA and VCIA are pleased to report that that on February 20, 2008 the Internal Revenue Service announced that it is withdrawing proposed IRS Regulation §1.1502-13(e) on consolidated returns that would have adversely affected single parent captive insurance companies. Consequently, the public hearing requested by the Coalition on this issue which was scheduled for February 29th has been cancelled.

“We are thrilled that the IRS and Treasury Department have chosen to withdraw the portion of the proposed regulation involving captive insurance companies,” said Dennis Harwick, CICA President and Co-Chair of the Coalition. “This welcome, but unusual, action is testimony to the strong technical response that the Coalition developed for the IRS and the on-going conversations that we had with representatives of the IRS and Treasury Department about the technical and policy flaws of the proposed regulation.”

“This decision removes the uncertainty that has hung over the captive industry since the IRS regulation was proposed last fall,” said Molly Lambert, Co-Chair of the Coalition and President of the Vermont Captive Insurance Association (VCIA). “We would like to thank all of the Coalition members who helped with both the technical and political response to the proposed regulation. The forceful and unified response of the captive industry, captive regulators, state governors, and affiliated organizations played a key role in convincing the IRS to withdraw the proposed regulation even before the formal hearing.”

Duane Castles - CICA

CICA is the first and best source of unbiased information, knowledge and leadership for captive insurance decision-makers. Look to CICA for the best networking, education and advocacy for the captive insurance industry.