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March 2021

RMG - U.S. Treasury Update

U.S Treasury Revenue Procedure 2020-45

U.S Treasury Revenue Procedure 2020-45 375 250 clevercow

U.S Treasury Revenue Procedure 2020-45

The IRS released Rev. Proc. 2020-45 providing the annual inflation for 2021.

The adjusted annual premium limit for small insurance companies making an 831(b) election for 2021 is $2.4M. This is an increase of $100k and is applicable to returns filed in 2022. the language included in the revised Revenue Procedure:

Tax on Insurance Companies Other than Life Insurance Companies. For taxable years beginning in 2021, under § 831(b)(2)(A)(i) the amount of the limit on net written premiums or direct written premiums (whichever is greater) is $2,400,000 to elect the alternative tax for certain small companies under § 831(b)(1) to be taxed only on taxable investment income.

Greg Hoffman
Managing Partner | Portfolio Reinsurance
CEO | RMG & Global Administrators

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