Is this an affiliated service group?

[KateSmithPA]

I have read as many threads and articles as I could find about this but I'm afraid I am still not confident about this.

Company A sells property and casualty insurance.

Company B sells life insurance, group insurance benefits, retirement planning and financial planning.

Company A owns 49% of Company B.

Both companies regularly refer clients to each other. There are no shared employees or expenses. The only connection between the two companies is the mutual referrals.

Is this an affiliated service group?

[Guest yukon]

:confused:

Don't all the requirements in determining an ASG refer to the organizations "regularly performing services" for each other...or are "regularly associated with each other" in the performance of services for third parties? I'd say, based on that, the answer is no.

[Archimage]

I agree. I see nothing that would make this an ASG.

[Mike Preston]

Derrin has incorporated your question into the Q&A column that he publishes. For the definitive answer, see:

http://www.benefitslink.com/cgi-bin/qa.cgi...d=164&mode=read

[KateSmithPA]

Thank you all for your help. It seems the more I learn, the less I know.

[Larry M]

Do they have duplication in the members of the Boards of Directors?

[Mike Preston]

How is that relevant? Are they non-profits where the issue is one of common control that is not identified? Unlikely.