The affiliated law firm of Capstone Associated, Feldman Law Firm, has appointed Kenneth Anderson to its practice to focus on restructurings based on the 2015 Protecting Americans from Tax Hikes (PATH) Act, and other captive insurance corporate matters.
The PATH Act, which came into law in December last year, imposed ownership restrictions for Internal Revenue Code Section 831(b) electing captives, and increased the cap on premiums, calling for major restructuring of many captive insurers.
Stewart Feldman, Capstone CEO, said: "We wholeheartedly welcome Kenneth Anderson to our team. He joins us after having practiced as a corporate lawyer at Davis Polk & Wardwell in New York and Baker Botts in Houston, among other firms.”
William Blankinship, director of Southeast for Capstone, added: "Clients have come to realise, many too late, that their captive managers lack the talent to address the new act. At the same time, with increased Internal Revenue Service audits of specific captive managers' clients, we've seen a more thorough client evaluation of their existing captive manager.”
“Many clients now realise that these captive managers have only clerical and administrative services supporting them in an audit conducted by state or federal taxing authorities or by the domiciles. When examined, clients find that the required work was never done and that the planning is a failure."
