The federal Internal Revenue Service listed microcaptive insurance programs on its 2024 “Dirty Dozen” list of 12 tax scams, saying the programs can prove to be bogus tax avoidance strategies.
Tag: microcaptives
Micro-Captive Owners Must Understand Options as IRS Pressure Grows
As the Internal Revenue Service (IRS) moves forward with the process of drafting new laws for micro-captives, what happens next is a key concern for owners of tiny captive insurance firms or those considering forming them.
IRS Expands Enforcement on Micro Captives as October Filing Deadline Looms
The Internal Revenue Service (IRS) has expanded its enforcement focus on ‘abusive’ micro captives insurance schemes, urging taxpayers to consult an independent tax advisor before the 15 October filing deadline. The IRS said taxpayers should not assume it will able to settle any transactions with the IRS or chief counsel on terms more favourable than… Continue reading IRS Expands Enforcement on Micro Captives as October Filing Deadline Looms
IRS Announces Global Settlement of Abusive 831(b) Captive Insurance Tax Shelters
The IRS has announced a global settlement of cases involving abusive 831(b) captive insurance schemes. According to the announcement, “The settlement requires substantial concession of the income tax benefits claimed by the taxpayer together with appropriate penalties (unless the taxpayer can demonstrate good faith, reasonable reliance).” What this means is found in Attachment 1 to… Continue reading IRS Announces Global Settlement of Abusive 831(b) Captive Insurance Tax Shelters