Captive insurance problems, Lance Wallach, captive insurance plan
Captive insurance problems, Lance Wallach, captive insurance plan: Learn more about captive insurance problems related to 419, 412i and Section 79 plans from expert witness Lance Wallach.I.R.S. Is Looking Into Captive Insurance Shelters
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Captive Insurance And The IRS
ReplyDeleteThe IRS continues to heavily scrutinize captive insurance arrangements. Certain captive insurance types have consistently appeared, including in 2019, on the IRS’s “Dirty Dozen” list of tax scams to avoid. Micro-captives in particular have been identified as potential vehicles for illegal tax shelters and the IRS is keen to crack down.
If the IRS believes that a captive insurance company is claiming deductions for non-insurance activities they will litigate. This includes going after captive insurance companies that are claiming unreasonable premium deductions. If the captive insurance company cannot show that they are distributing risk, selling insurance, shifting risk, or whether transactions involved insurance risk then that captive could be a target for the IRS.