21 min listen
What Are Micro-Captive Insurers?
FromTalking Tax
ratings:
Length:
11 minutes
Released:
Sep 26, 2019
Format:
Podcast episode
Description
Micro-captive insurance companies play a useful role for relatively small businesses that need to insure risks they can't buy coverage for elsewhere. The businesses self-insure, setting up companies that are captive to their owners.
Because Congress allowed micro-captive owners a tax advantage, some companies have abused the structures in ways that induced the Internal Revenue Service to put them on its list for extra-close scrutiny. The IRS has won a few big cases against micro-captives, and hundreds more are docketed in the U.S. Tax Court.
The IRS has offered to settle with some of these companies in an effort to deal with the issue in a comprehensive way.
Host Amanda Iacone talked with Bloomberg Tax reporter Allyson Versprille about the nature of micro-captives and what the settlement offer might signal for the future of legitimate micro-captive structures.
Listen and subscribe to Talking Tax from your mobile device:
Via Apple Podcasts | Via Stitcher | Via Overcast | Via Spotify
Because Congress allowed micro-captive owners a tax advantage, some companies have abused the structures in ways that induced the Internal Revenue Service to put them on its list for extra-close scrutiny. The IRS has won a few big cases against micro-captives, and hundreds more are docketed in the U.S. Tax Court.
The IRS has offered to settle with some of these companies in an effort to deal with the issue in a comprehensive way.
Host Amanda Iacone talked with Bloomberg Tax reporter Allyson Versprille about the nature of micro-captives and what the settlement offer might signal for the future of legitimate micro-captive structures.
Listen and subscribe to Talking Tax from your mobile device:
Via Apple Podcasts | Via Stitcher | Via Overcast | Via Spotify
Released:
Sep 26, 2019
Format:
Podcast episode
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