May 2020 Edition
We Are Open for Remote Business and remain committed to providing Best-in-Class Captive Management Services.

I hope this email brings you well wishes as we continue to practice safe social distancing and proper hygiene. Those in New York and New Jersey have a ways to go, but hopefully, we can start to open back up like Florida just did this week.

I have found, now is an excellent time to work on some personal growth, Reading, researching, learning best practices, and how to do better in life. Below is an article that I found exciting and full of valuable information on negotiating. Maybe that will be a good start for some. 

If you have any articles or books you recommend, please share them with me. I am always looking to learn something new. Plus, it will give me some good content for  The Captive Tribune !

As a reminder from last month:
To help ensure the health and safety of our team, we will be operating in a hybrid remote work environment, allowing our business operations to continue as usual.
During this timeframe, we ask that everyone please utilize email as the preferred method of communicating with us. However, our main phone line will remain open and active for the foreseeable future. If you have any questions related to general Captive matters, broad coverage questions, future coverage options, etc., you can contact me directly at 516-359-8382
If you have any questions about implementing a Captive, call me directly or visit our  Captive 101 section  on our website.

We appreciate your business!
Larry Papola
Lawrence J. Papola, Jr.
US Supreme Court agrees to hear CIC Services’ case against IRS
The US Supreme Court has agreed to hear CIC Services’ case against the Internal Revenue Services (IRS) regarding IRS Notice 2016-66.
CIC Services explained that the issue at hand is whether or not the IRS can continue to systematically enforce obviously illegal regulations against taxpayers merely because those regulations are enforced by an illegal ‘penalty tax’.

Sean King, general counsel for CIC Services, argued: “Under the Anti-Injunction Act, courts are not permitted to restrain the IRS’s attempts to assess or collect taxes against taxpayers.”
He stated: “The IRS interprets this to mean that it is free to issue even obviously illegal regulations and that by simply subjecting those taxpayers who fail to comply with that illegal rule to an also illegal ‘penalty tax’, courts are magically prohibited from enjoining enforcement of the illegal rule because doing so would have the effect of prohibiting the IRS from collecting the illegal penalty ‘tax’ from those who fail to comply.”

Captive Claim Highlight
Client Profile
Industry:   Transportation
Specialty:   Moving and Logistics Services
Location :   Maryland
Claim Information
Description: One of our Insureds had an incident where they delivered damaged goods to a customer. In order to fulfill their contract, the Insured had to replace the damaged goods. Through their captive's Actual Net Loss policy's Transit Risk coverage, the Insured was able to recoup their losses related to the damaged products.
Line of Coverage:   Transit Risk
This exposure was elected for coverage by the client under their captive policy. This resulted in a claim payment amount of approximately $60,000.
*Please note that each claim will undergo an independent investigation and thorough review process. Various components specific to the claim at hand will be assessed thoroughly to determine if the loss is covered by the policy.
VCIA Address IRS Letter
Concerning Micro Captives
The Vermont Captive Insurance Association (VCIA) has sent a letter to Steven Mnuchin, secretary of the Department of the Treasury and Charles Rettig, commissioner of the Internal Revenue Service (IRS) in response to the service’s recent letters concerning micro-captives.

Rich Smith, president of the VCIA, explained that the letter came at a “time of extraordinary circumstances as every organisation including the federal government, is struggling to endure the pandemic crisis we now face”.

Smith explained that insureds need insurance coverages to protect them in the struggling economy. He stressed: “The letter’s intimidating and draconian questioning regarding the legitimacy of the small company insurance industry is insensitive at best.”

May 2020 Calendar
MAY 1: May Day
MAY 5: Cinco De Mayo
May 6: National Nurses Day
MAY 7: National Day of Prayer
MAY 10: Mother’s Day
MAY 16: Armed Forces Day
MAY 23: World Turtle Day
MAY 24: National Brother Day
MAY 25: Memorial Day
May is Observed as:
National Bike Month
National Physical Fitness and Sports
National Mental Health Awareness
Lupus Awareness Month
Lyme Disease Awareness Month
6 Tips for Negotiating in a Crisis

After shuttering storefronts and scaring away consumers, the crisis has left many entrepreneurs faced with a series of pressing negotiations: with a landlord, consumer credit agency or a mortgage holder. How can you negotiate your way through this crisis so your business comes out strong?

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Suite 101
Syosset, NY 11791

Office: 1-833-US-CAPTIVE
Fax: 888-929-6565