American author Mark Twain popularized the expression that there are, “lies, damn lies and statistics.” I suspect that if he were alive today, he might say, “there are lies, damn lies, statistics and IRS press releases about captive insurance companies.”
Commercial insurance markets are hardening and rates are going up, putting pressure on businesses and risk management decision makers. Nate Reznicek, ACI, Director Of Operations at CIC Services has recently published a thorough article in CAPTVE INTERNATIONAL that addresses the causes of the current hard market and steps that business owners, CFOs and Risk Managers in middle-market companies can explore to reduce the impact they feel.
CIC Services is currently suing the IRS for its unlawful Notice 2016-66. Support for this lawsuit continues to mount as more respected institutions are taking notice of administrative state overreach and the harmful effects of the abuse of power. In this instance, the abuse of power is by the IRS.
The Self Insurance Institute Of America just released a response to the IRS’ latest press release (IRS 2020-26). Notice 2020-26 is another bullying effort by the Service to try to scare middle market business owners from acting in the best interest of their companies and the employees that rely on them.