In today's volatile and unpredictable economic climate, it is essential to protect your family, your business and yourself. Now, more than ever before in our country's history it is so important to plan ahead to be ready for the rainy days ahead when you will need to have financial resources to make it through the hard times.
Captive Insurance companies are sometimes used to purchase life insurance outside the estate of the business owner with pre-tax dollars. This should not be the primary focus of the captive, but it can be done with a portion of the captive’s accumulated assets. If the primary purpose of the captive is to buy life insurance, or act as the conduit for the pre-tax purchase for life insurance, or if life insurance becomes the significant asset of the captive, there is a risk that the arrangement will not be considered a bona fide captive arrangement but will instead be treated as a tax shelter.
A captive is an insurance company, and should be treated as such, not a vehicle for investing.
IRS Fights Fraud with New Direct Deposit Limits
IRS plans electronic refund limits into a single account or prepaid debit card to help fight identity theft and to stop certain preparers who improperly claim fees.
IRS new voluntary program is designed to encourage education and filing season readiness. Return preparers who elect to participate will receive a record of completion from the IRS allowing them to publicly differentiate themselves in the marketplace if desired.
But how do all these changes relate to you and your taxes?
On March 23, 2010, President Obama signed the Affordable Care Act. The law put in place comprehensive health insurance reforms that put consumers in charge of their health care. The Affordable Care Act is working to make healthcare more affordable, accessible and of a higher quality, for families, seniors, businesses, and taxpayers.