Despite the relatively simple mechanics of the distribution and forgiveness of PPP loans, the taxation of both expenses paid for with PPP loan proceeds and forgiveness of the PPP loans has continued to evolve, leaving complicated rules for taxpayers to navigate.
Recently, many of our clients have received notices from the county assessor’s office that the county is conducting an “annual review” of their property for assessment purposes. How should you respond to these types of requests? It depends.
Last week, we reviewed the basics about captive insurance companies, nonadmitted insurance and the essence of the federal legislation known as the NRRA. This week, we examine what the states did to implement NRRA and how that affected, or may affect, insurance premiums paid to out-of-state captives.
We are seeing increased focus by state tax departments on nonadmitted insurance premium reporting, tax payments owed and auditing of captive insurance companies. This article is Part I of our primer on the application of the nonadmitted premium tax rules to purchases of insurance from out-of-state captives.