NCCIA Newsletter | March 2018

 

VOLUMN 4 ISSUE 3
March 2018

RECENT NEWS

Changes to Section 831(b): 

Last week, Congress passed a 1.7 billion dollar spending bill for the rest of the fiscal year, and to the surprise of many in the captive insurance industry, the bill contains much sought after amendments to Section 831(b). Buried in the legislation at pages 2080-2083, are amendments to section 333 of the PATH ACT legislation which passed in 2015.

With permission from Captive Insurance Times (Issue 144 online), we quote from its summary of the legislation: “The SIIA (Self Insurance Association of America) proposed clarifications to the PATH ACT have been included in the legislative tax of the Congressional Omnibus Appropriations Bill signed by President Trump on Friday.

“The recent changes, which are a result of two years of meetings and advocacy from SIIA and members of the industry, In October 2016, SIIA, in collaboration with 15 state captive insurance associations (which included the NC Captive Insurance Association), sent letters to the US Treasury Department and the Internal Revenue Service seeking  guidance and clarification around the PATH ACT revisions to 831(b). NCCIA also sent letters to members of our Congressional delegation.

“According to Ryan Work, Vice President of Governmental Relations at SIIA, the proposed changes include in the bill can be summarized as (1) clarification to the look-through language to the insured policy holders regarding the first diversification test (20% rule), (2) the clarification of the definition of “specified asset” under the 2nd diversification test to mean the aggregate amount of the relevant specified assets, and (3) the clarification of specified asset and spousal ownership to address concerns surrounding spousal attribution issues and community property.   The PATH ACT amendments are retroactively effective as if they had been included in the provisions of the 2015 legislation to which they relate.

The IRS “Dirty Dozen”

The IRS announced on March 19 that micro-captives had once again been named as a type of “abusive tax shelter on their “Dirty Dozen’ list of tax scams. For the fourth consecutive year, the annually produced IRS list outlines the tax scams that the IRS will be targeting over the coming year. NCCIA does not believe the announcement is likely to impact the captive insurance industry in North Carolina or lead to a reduction in micro-captive formation. “The most likely impact on micro-captives will come from the Tax Court in post-Avrahami rulings on cases it has already heard”, according to Jeremy Colombik, NCCIA Chairman.


 

 

PEOPLE & COMPANIES

Col. J. Quincy Collins, Jr.  USAF Ret. Will be the Keynote Speaker for the Association’s 2018 Annual Conference, August 20-22

NCCIA President & CEO Thomas Adams announced today that Col. J. Quincy Collins, Jr.  USAF Ret. Will be the Keynote Speaker for the associations 2018 Annual Conference, August 20-22 at the LeMeridien Hotel in Charlotte. Col. Collins will speak on Monday afternoon at 5pm to kick off the conference.

A genuine American Hero from the Vietnam War, Flying an F-105 “Thud”, he was shot down over North Vietnam 2 Sept 1965 suffering severe injuries of the head, leg (broken fibula) and arms on ejection. Captured and held POW for 7-1/2 years, he endured constant torture at the infamous Hoa Lo Prison, a.k.a. Hanoi Hilton. The longest held POW of any Citadel alumnus and one of the longest held in American history, he was labeled as “incorrigible” by the North Vietnamese and was a “cellmate” of John McCain, the 2008 GOP nominee for President. While a POW, and at the risk of extreme torture, he courageously wrote a patriotic song on bathroom tissue using blood as ink that was sung by all the POWs in 1972 during a prison uprising, and again at a Nixon White House reception for POW’s in 1973. The recipient of 2 Silver Stars and parachutist rating, he is a very powerful public speaker who through sharing of his wartime experiences reminds us how powerful love of God and Country can be.

(Editors note. Col. Collins biographical information courtesy the Citidal Alumni Association)

Adams Elected Chairman of the Oversight Committee for ISO 17024

“NCCIA President & CEO, Thomas L. Adams, was elected Chairman of the Oversight Committee for ISO 17024 in the United States. Adams has served on the committee for five years.


 

NCCIA ONLINE

NCCIA Unveils Updated nccia.org Website

On March 15th  NCCIA unveiled its update of the nccia.org website. The new website is robust and contains many features that were not available on the old site which had served the association since it’s inception in 2013. Some of the features include the ability to word search, numerous links to captive related information and updated information about association member companies. Coming later this week all back copies of the NCCIA Newsletter beginning with January 2014 will be archived on the site and available for review. To take a quick look at the website.


 

CONFERENCE NEWS

Early Bird Registration for the 2018 NCCIA Annual Conference will open April 27

Early Bird Registration for the 2018 NCCIA Annual Conference will open April 27 and run through June 7th. Prices for both members and non- members will increase after that date. A limited number of sponsorships and exhibits are still available. Click here for more details.

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Posted in 2018 Newsletter Archives, NCCIA Newsletter Archives.