Tax Analysts provides news, analysis, and commentary on tax-related topics, including the latest developments affecting insurance taxation.

One impact of tax upon insurance can be found in the Affordable Care Act which includes a number of new tax information reporting requirements, such as Form 1095-B, "Health Coverage," Form 1095-C, "Employer-Provided Health Insurance Offer and Coverage," Form 1094-B, "Transmittal of Health Coverage Information Returns," and Form 1094-C, "Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Return," as well as new taxes, credits, and penalties. New section 4980I will impose a so-called "Cadillac Tax" (excise tax) on certain high value employer provided health insurance. Section 36B provides a refundable credit for the purchase of health insurance. Section 5000A imposes a shared responsibility payment on individual taxpayers who do not have minimum essential coverage. ("ACA Information Reporting System off to Smooth Start.")

Insurance, particularly in the form of life insurance, can function as a tax-preferred investment. One tax preference is the section 72 exclusion of some life insurance proceeds. Insurance premiums are also deductible business expenses in many situations.

A captive insurance arrangement involves one entity receiving premiums to insure an entity which owns it. Such an arrangement was one of the issues in Ax v. Commissioner, 146 T.C. No. 10, which was analyzed in "Administrative Procedure Act Doesn’t Apply to Deficiency Case."

In a so-called "insurance wrapper," an investment account holder nominally purchases an insurance policy and transfers the bank account assets to the insurance company as the premium in a segregated account and paid out under the terms of the contract, essentially converting an account holder to a policyholder. Such arrangements were in play in the transactions examined in U.S. Executes 31^st Swiss Bank Non-Prosecution Agreement.

Tax Notes consistently and promptly publishes all relevant developments regarding insurance taxation issues.

Tax Notes Federal and Tax Notes Today Federal subscribers have free access to James M. Peaslee and David Z. Nirenberg, Federal Income Taxation of Securitization Transactions and Related Topics (Fifth Edition). Chapter 3, Part D.1.n, discusses when owners of variable life insurance and annuity contracts are considered to own the underlying assets. Chapter 13, Part I, discusses issuers of catastrophe bonds and the definition of insurance.