Greenberg Traurig’s Tax Practice recently published an alert discussing the excise tax refund opportunities for foreign reinsurers for retrocession policies.  The IRS has decided to back off its position that the one percent excise tax is due on a policy of reinsurance where a foreign reinsurer reinsures a policy of reinsurance issued by another foreign reinsurer (referred to in the industry as a retrocession policy). Foreign reinsurers who have previously paid the excise tax on such retrocession policies should determine whether opportunities exist to file excise tax refund claims for those payments.

To read the full alert, click here.