February 2016 - Industry Update
This week the IRS issued its 2016 list of tax scams that taxpayers should be concerned about. For the second consecutive year, captive insurance companies are among the "Dirty Dozen". News release IR2016-25 confirms the general disdain of the IRS for captive insurance companies set up for tax avoidance instead of risk financing purposes, including the "micro captive insurance strategy". It bears noting that captive insurance companies are not the only carryover from 2015; in fact 10 of the 12 items on the 2016 list are identical to that on the 2015 list.
January 2016 - Industry Update
Happy New Year! As we mentioned last month, there were proposed changes to section 831(b) which were part of the omnibus bill extending a wide variety of tax provisions. We are pleased to let you know that the Senate approved, and President Obama signed the legislation into law prior to the Holiday break.
March 2015 - Industry Update
On February 3, 2015 the IRS issued the news release IR-2015-19, which lists abusive micro captive insurance companies among the 2015 “Dirty Dozen” tax scams taxpayers should be wary of.
March 2014 - Industry Update
In January 2014 the United States Tax Court released its long awaited decision in Rent-A-Center v. Commissioner, addressing the deductibility for Federal income tax purposes of premium payments made by brother/sister entities to a commonly controlled captive insurance company.
July 2013 - Industry Update
A recent court case underscores the importance of dealing with reputable service providers. (Salty Brine I, Ltd. et al v. United States of America).