The 831(b) Institute, a group that advocates for micro-captive insurance providers, sent a letter to the Internal Revenue Service requesting an extension on a deadline for disclosing information about transactions that the IRS views as tax shelters.
In January, the IRS issued
However, the micro-captive insurance industry wants more time to comply with the new reporting and disclosure requirements.
The 831(b) Institute submitted a letter to acting IRS commissioner Melanie Krause Monday calling for an extension on its new regulatory requirements under Section 831(b) of the Tax Code. The new regulations, 26 CFR 1.6011-10 and 1.6011-11, require micro-captive owners electing under Section 831(b) to file disclosures with the IRS's Office of Tax Shelter Analysts by April 14 if they have loss ratios below a stated amount or if they have engaged in specific types of financial transactions in the past decade.
"These regulations provide only 90 days for affected micro-captive industry members to review their financial statements and determine if the disclosures apply to their operations," said Dustin Carlson, president of the 831(b) Institute, in a statement Tuesday. "Due to their size, small businesses are not afforded the same resources to provide the capital or manpower needed to adequately respond to these time-sensitive demands, especially when overlapping with the already-busy April 15 tax filing deadline."
His group believes that extending the reporting deadline would provide small businesses and micro-captive owners an extra 90 days to respond to the disclosure requirements, giving them more capacity to adequately and thoroughly research, report and meet the requirements.
