8180 / Can a foreign captive avoid excise taxes and elect to be taxed as a domestic insurance company?

A foreign captive can avoid the excise taxes imposed on foreign insurance premiums, as well as certain reporting requirements, if it elects to be taxed as a U.S. insurance company.¹ This is known as a Section 953(d) election. Upon making this election, the foreign captive is treated as though it has transferred all of its assets to a domestic captive in connection with an exchange to which IRC Section 354 applies.²

Once the Section 953(d) election has been made, it can be revoked only with IRS consent.³

1.IRC § 953(d).