ITB 11-56: IRS announces non-application of Section 6050W to insurance companies that administer certain insurance arrangements

The IRS recently announced in Notice 2011-78 that it will amend the existing regulations under Section 6050W to expressly provide that an insurance company or an affiliate administering a self-insured arrangement on behalf of an employer or other entity on a cost-plus basis, or under an Administrative Services Only plan or an Administrative Services Contract plan, will not be treated as a third party settlement organization.