The US House Ways and Means Committee has sent a letter to IRS commissioner Daniel Werfel, expressing their support for microcaptives.
The 831(b) Institute benefit recognised committee representatives Van Duyne, Mike Carey, Ron Estes, Randy Feenstra, David Kustoff, Carol Miller, Greg Stuebe and Brad Wenstrup as supporters of the letter.
The institute is a group, led by Matthew Queen, owner of Queen law firm, promoting guidance, education and compliance of 831(b) electing microcaptives.
Legislative awareness and action is necessary to provide clarity and ensure compliance with the 831(b) tax code, says the institute. It adds that the lack of guidance provided by the IRS on 831(b) plans is ‘unfair’ and targets small business owners acting in good faith on the laws Congress passed.
The letter states: “The IRS may not eliminate laws that it finds inconvenient to administer or somehow troublesome, nor may it legislate via regulation. The Treasury and the IRS are harming the US economy by their misguided effort to eradicate small captive insurance.”
Peter Dawson, advisor to the 831(b) Institute, comments: “The letter written by the House Ways and Means Committee points out the duty the IRS has in implementing the will of Congress and acknowledging the flaws in their current approach to regulating microcaptives.”
