Ask the Expert: Reinsurance FAQs for 2022

Q. My accountant mentioned that my participation in a reinsurance company requires that certain disclosure statements be filed along with my tax return. Should I be concerned with the information being requested on these disclosures?

A. I speak to some of the disclosure requirements with regard to reinsurance company participation in my response to question 1 above. If the reinsurance transaction in which you are participating is built and operated with appropriate substance, you should have no concern with filing the required disclosure statements. You should treat the completion of these applicable disclosure statements as you would any other tax form that is part of the full submission of your tax return. It should be noted that failure to file these disclosures as required carries some substantial penalties, so please be sure to discuss the requirements with your tax preparer.