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IRS finalises 831(b) regulations, concedes on loss ratio criticism 

The Internal Revenue Service (IRS) has finalised the long-awaited update to its 831(b) regulations which sees the loss ratio for micro captives considered as “listed transactions” reduced to 30%, while the loss ratio for “transactions of interest” has been reduced to 60%. 

The finalised regulation will appear in the Federal Register on 14 January, with regulations generally taking effect 30-days after publication in the Federal Register.  

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