I hope you had a great 2022 and a great start to 2023. I want to thank everyone involved in making 2022 our best year ever! After many years of educating CPAs, Advisors & Business Owners about the benefits of our Captive insurance program, 2022 results show that it really started to resonate with our subscribers.
For example, I have been educating and answering questions for Michael Simms of Veracity Advisors in Palm Gardens, FL, since 2019. Last year, Michael brought us two clients who saw our captive program's benefits and implemented captives with us.
This year we added a few new industries to our Captive Insurance portfolio. They include a Prefab Steel Building Distributor, a LED Light Manufacturer & Distributor, and a High-Tech Training Courseware company. As you can see, almost any type of business can enjoy the benefits of our Captive insurance program.
In the legal world, one of our clients won a decision against the IRS, which was great news for the Captive industry. The United States Tax Court accepted the IRS's concession of all the taxes and penalties that the Service had initially proposed regarding the captive insurance for the tax years under audit (2015-2018). The IRS also agreed that it would not examine two subsequent tax years (2019 and 2020), and the client's payments for insurance were deductible, satisfied the exclusion under section 831(b) of the Internal Revenue Code, and complied with the law.
This helped many companies who were on the fence move forward with starting a Captive. Also, Commercial Insurance rates going up every quarter is another reason for our growth. If you are a regular reader of The Captive Tribune, you know we have been reporting this a lot over the past two years. And we do not see the rates going down any time soon.
Thank you for being a subscriber, and know I am always here to answer any of your questions. Our captive process takes time, so starting earlier in the year helps avoid the stress of the holidays and the craziness of the year's end. I want to make sure all our client's expectations are met and that you know everything there is to know before you commit to mitigating your risk by starting a Captive.
Thank you for a great 2022, and I hope we all have an even better 2023!
Sincerely,
