SIIA Responds to IRS Statement on Captive Insurance
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.
CIC Services is a member of SIIA, and SIIA has proven to be the most powerful advocate and defender of the captive industry. To download a PDF of SIIA’s statement regarding Notice 2020-26, CLICK HERE.
I’ve included a few excerpts from SIIA’s statement below:
While the Self-Insurance Institute of America, Inc. (SIIA) continues to be supportive of curbing abusive practices within the industry, it is important to note that the vast majority of captive insurance participants are not only doing the right thing but are left untouched by the recent actions of the IRS.
Thus, while approximately 160 captive structures have agreed to consider settlements with the IRS, thousands of captives remain in place that are assisting America’s small and medium sized businesses to mitigate important and real risk factors.
Captive insurance companies have long been successfully utilized by employers, large and small, as a means to address employer risk management needs. In fact, enterprise risk captives are simply allowing small and medium sized businesses access to similar risk structures as their large Fortune 500 counterparts.
SIIA and its members are committed to advocating for a strong and reliable captive insurance environment that educates owners, captive managers, and others, and establishes best practices for those participants. In addition, SIIA continues to push for appropriate regulatory oversight that does not overreach in its cost and scope, and which focuses on actual abusive practices versus those industry participants doing the right thing. Congress and others continue to be concerned about the resources being invested in this issue by the IRS considering the size of the industry and the scope of potential abuse.
As part of its ongoing work on behalf of the captive industry, SIIA has established the Captive Manager Code of Conduct, which provides a set of ethical business conduct guidance to captive managers that elaborates on several main tenets, including integrity, conflict of interest, confidentiality, advertising and practice management.
As a note, CIC Services has adopted the SIIA Captive Manager Code Of Conduct.
CLICK HERE to download the entire PDF from SIIA.