Congress Urged to Protect Small Businesses Amid IRS Changes
Congress Urged to Protect Small Businesses Amid IRS Changes
CIC Services is raising alarm over a recent IRS regulation that jeopardizes the ability of small and mid-sized businesses to utilize captive insurance effectively. This regulation, which emerged recently, imposes significant constraints on IRC Section 831(b), a key provision that has been instrumental for businesses seeking affordable risk management solutions.
The timing could not be more critical, as many businesses are grappling with increasing commercial insurance premiums, higher deductibles, and narrowing coverage choices. Without alternatives, these businesses face heightened financial uncertainty.
The Importance of IRC Section 831(b)
The IRC Section 831(b) election, established nearly 40 years ago, has historically allowed smaller businesses to manage risks in a cost-effective manner. Sean King, CEO of CIC Services, emphasizes the importance of this provision, stating, "The intention behind the 831(b) election was to empower small and mid-sized businesses to handle their risks economically, yet the new IRS rule threatens to dismantle that framework." He urges Congress to take prompt action to reverse the rule.
Immediate Action Required from Congress
Given the provisions of the Congressional Review Act (CRA), Congress has a limited opportunity to introduce a resolution aimed at overturning this recent regulation. CIC Services is compelling lawmakers to act decisively and swiftly to mitigate the impending negative effects on businesses.
Steps for Lawmakers
CIC Services is calling on both Senators and Representatives to:
- Introduce a joint resolution under the CRA to disapprove of the IRS rule.
- Understand the economic damage that this new regulation could inflict on small businesses throughout the country.
- Advocate for reasonable and equitable insurance options to support American businesses.
Engagement from Business Owners
While the call to action primarily lies with Congress, business owners play a pivotal role in influencing their representatives. It’s crucial for these business owners to engage with their local officials regarding the potential impacts of the IRS rule.
What Business Owners Can Do
Business owners are encouraged to:
- Contact their lawmakers to share how this IRS rule may affect their operations.
- Provide personal stories that illustrate the real challenges posed by losing access to captive insurance.
- Participate in advocacy by collaborating with industry groups to remain informed about developments.
About CIC Services
CIC Services serves as a captive insurance manager, helping businesses turn risks into opportunities by allowing them to establish their own insurance companies. This approach empowers small and mid-sized business owners to maintain control over their risk management strategies while maximizing wealth accumulation. For more information about how CIC Services can assist, interested parties can visit their website.
Media Contact
For further media inquiries, please reach out to Sarah Merrell at CIC Services. You can contact her directly via phone.
Frequently Asked Questions
What is captive insurance?
Captive insurance is a form of self-insurance where a company creates its own insurance subsidiary to manage its risks.
Why is the IRS rule concerning Section 831(b) important?
This rule affects the tax treatment of premiums paid to captives, making it harder for smaller businesses to operate their insurance models effectively.
What actions can business owners take to oppose the IRS rule?
Business owners can contact their representatives, share their concerns, and advocate for legislative changes through industry groups.
How can CIC Services assist businesses?
CIC Services provides expertise in setting up and managing captive insurance to help businesses better control their insurance costs and risk exposure.
Who can I contact at CIC Services for more information?
Business owners can reach out to Randy Sadler at CIC Services for more details on how they can get involved and understand the changes.
About The Author
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