Captive
Insurance
For those wishing to protect their captive,
we’ll get you compliant. And for those facing an audit, we’ll be your defense.
Captive Insurance And The IRS
The 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.
However, the IRS has started to evaluate possible
abuses surrounding CICs, and has begun examinations in the area. For those businesses who are
unprepared when facing examination, there can be
consequences.
We’ll Get You Compliant
If you or your client wants to protect their CIC, the time to become compliant is now.
alliantNational’s team of experts helps with:
alliantNational’s team of experts helps with:
- Risk Pool and UTP Review
- FIN 48 Analyses
- Review and Preparation of Concern Areas
- Review and Analysis of Foreign Bank Report Filings
- Substantiation and Documentation
- Assistance Compliance
We’ll Be Your Defense
Already under audit? alliantNational will help you or
your client avoid consequences from the IRS, including understatement and negligence penalties, as
well as the potential unwinding of the captive formation and subsequent loss of benefits.
The time to act is now, and alliantNational can help
defend your interests with:
- Audit Defense
- Substantiation and Documentation Assistance
- Risk Assessment of Your Captive
We’ll Be Your Defense
If you or your client wants to protect their CIC, the time to
become compliant is now.
alliantNational’s team of experts helps with:
- Risk Pool and UTP Review
- FIN 48 Analyses
- Review and Preparation of Concern Areas
- Review and Analysis of Foreign Bank
- Report Filings
- Substantiation and Documentation
- Assistance Compliance
“The IRS has only increased its scrutiny
when handling captives. It’s an honor to
use my experience with the agency to help
businesses navigate the complex nature of
captives.”