KNOXVILLE, Tenn., Feb. 24, 2025 /PRNewswire/ — CIC Services is calling on Congress to act swiftly to overturn a new IRS rule that threatens the ability of small and mid-sized businesses to manage risk through captive insurance. The regulation, finalized in January 2024, severely restricts IRC Section 831(b), a long-standing provision designed to help businesses affordably and efficiently protect themselves from financial risk.
The new rule comes at a time when businesses are already facing rising commercial insurance premiums, higher deductibles, and shrinking coverage options. If it stands, many businesses could be left without viable alternatives for protecting against financial uncertainty.
“Congress enacted the 831(b) election nearly 40 years ago to give small and mid-sized businesses a way to manage risk affordably, yet this new IRS rule severely undermines that purpose,” said CIC Services CEO Sean King. “Congress has a clear opportunity to act now, overturn this rule, and protect businesses from unnecessary financial hardship.”
Congress Must Act – and Time Is Limited
Under the Congressional Review Act (CRA), Congress has a limited window to introduce a resolution to overturn this regulation. CIC Services urges lawmakers to take immediate action before it’s too late.
CIC Services calls on senators and representatives to:
- Introduce a joint resolution under the CRA to disapprove of the IRS rule.
- Recognize the economic harm this regulation will cause small businesses in their districts.
- Stand up for fair and reasonable insurance options for American businesses.
How Business Owners Can Help
While the responsibility to act lies with Congress, business owners can make a difference by urging their elected representatives to support a CRA resolution. Business owners are encouraged to:
- Contact their members of Congress and explain how this rule will impact their business.
- Share their personal experiences to highlight the real-world consequences of losing access to captive insurance.
- Engage in advocacy efforts by working with industry groups and staying informed.
To learn more about how to support this effort, contact Randy Sadler at CIC Services at [email protected].
About CIC Services
CIC Services is a captive insurance manager and strategist. Since 2005, the company has helped small and mid-sized business owners turn risk into wealth by owning their own insurance company. More information on CIC Services is available at captivatingthinking.com.
Media Contact:
Sarah Merrell
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SOURCE CIC Services
