As a business grows and matures, its owners may look for additional means to grow revenue and boost business wealth. A common approach is to start or acquire an additional business that serves the core business. This is often described as
My father always taught me to set aside money for rainy days. “You have to pay yourself first,” he would remind me. “Before you spend any money that you earn, you have to pay yourself by saving some money for a rainy day.” This was and still is great advice. And, of course, untapped “rainy day” money can always be enjoyed in the future.
Is the same advice true for businesses and business owners?
History has repeatedly demonstrated that when the IRS gets a finger, they take off an arm. Any efforts by the IRS to curtail the rights of small captive insurance companies should be met with the utmost resistance.
This Spring we have noted that the IRS has launched a coordinated PR and political attack
By: Sean King, JD, CPA, MAcc
Dear Senator / Congressperson:
I am writing concerning the “tighteners” to IRC Section 831(b) that have been proposed to Senator Grassley’s office by the Self Insurance Institute of America (SIIA).
While we do not oppose attempts by the U.S. Treasury Department, the Self Insurance Institute of America (SIIA) and the National Association of Insurance Commissioners (NAIC), among others, to ensure that small captive insurance companies are operated for legitimate risk management and insurance purposes rather than for estate planning reasons, SIIA’s currently-proposed methods of accomplishing that objective, namely limiting trust ownership and forbidding the purchase of life insurance by 831(b) captives, are actually largely ineffective