Search
 

IRS and Congress investigate fraudulent tax practices by micro-captives

The IRS and Congress are on to small captive insurers that are being used for tax and estate planning purposes over their intended risk management purposes.

By Caterina Pontoriero | Updated on June 08, 2015

The Internal Revenue Service (IRS) and Congress have launched campaigns to investigate small (or “micro”) captive insurers in recent months. According to law firm Duane Morris, a number of advisors, accountants and estate planners have been using micro-captives to benefit from tax and estate planning purposes, instead of using them for their intended risk management purposes.

On the surface, these micro-captives still present risk management as part of their benefits. However, these captives have been structured so that the tax and estate planning aspects completely overwhelm the insurance aspects, Duane Morris claims. This practice has not gone overlooked by the IRS and Congress.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.