Last month, the IRS issued the tax equivalent of an air raid siren by placing captive insurance companies on its list of Dirty Dozen abusive tax shelters for the 2015 filing season. Businesses that have formed captive insurance companies should consider it a question of “when” not “if” when it comes to receiving an IRS letter or audit, especially small and mid-sized businesses.
In his article “Captive Insurance: IRS Knocking” appearing in Forbes, former Senior Counsel to the U.S. Senate Finance Committee and alliantgroup National Managing Director, Dean Zerbe, discusses the IRS’s recent crackdown on captive insurance companies – particularly on those small captive insurance companies seeking the benefits of Section 831(b) of the tax code. According to Zerbe, those small and medium businesses that have formed captives should run – not walk – to ensure their full compliance with the IRS.
alliantNational, alliantgroup’s national practice, provides subject matter expertise on complex and emerging federal, state and international tax issues as well as legislative and regulatory affairs to help businesses receive timely and precise guidance on all their tax matters. Contact us today to learn how your business can benefit from alliantgroup’s tax consulting services.