IRS Issues Alert on Abusive Micro-Captive Insurance Arrangements

On April 9, 2021, the IRS issued IR-2021-82, which urged participants in abusive micro-captive insurance arrangements to exit these transactions as soon as possible. At the time of the release, the IRS noted it has increased examinations of micro-captive arrangements and that it recently won another US Tax Court Case with the March 10, 2021 ruling in Caylor Land & Development, Inc. v. Commissioner, T.C. Memo 2021-30 (“Caylor”).

What’s Adequate Risk Distribution After Recent Trilogy of Captive Tax Cases?

In three recent cases, the U.S. Tax Court found related-party insurance companies (captive insurance companies) didn’t sufficiently distribute risk to allow the insured parties to deduct their premium payments. In an article recently published by Bloomberg Tax, Laurie Bizzell of Bennett Thrasher LLP analyzes the cases, the court’s historical view and the IRS’ position to find there is no conclusive definition of risk distribution.

The Captive Insurance Tax Landscape in 2019

It is critical for clients and practitioners to appreciate the Internal Revenue Service’s (“IRS”) historic positions and analysis regarding captive insurance companies, in order to fully understand the current captive insurance tax environment. The following discussion focuses on the relevant authorities contained in the Internal Revenue Code and Regulations, the current views of the IRS as set forth in administrative rulings and pronouncements and decisions dealing with what transactions qualified as insurance, and whether the activities of a related captive insurance company are those of a company primarily and predominately engaged in the insurance business.

Alana Mueller Featured in Insurance Journal

Bennett Thrasher’s Senior Manager, Alana Mueller, was featured in an article in Insurance Journal that highlights the July 1 enactment of several business-friendly amendments to Georgia’s captive insurance law.

Alana Mueller Discusses Captive Insurance Changes in the Atlanta Business Chronicle

Alana Mueller, a senior manager in Bennett Thrasher’s Captive Insurance practice, authored a May 29 Viewpoint article for the Atlanta Business Chronicle. The article highlights the key changes to Georgia’s captive insurance laws taking effect July 1, 2015. “Under Georgia’s new law,” she notes, “the premium tax on captive insurance companies drop to 0.4 percent […]

Anton Hayward Featured in Captive Insurance Company Reports

Bennett Thrasher partner, Anton Hayward, was featured on May 28, 2015 in an article about recent changes in Georgia’s captive insurance laws and Bennett Thrasher’s leadership in reviving the Georgia Captive Insurance Association.

Captive Insurance: A Closer Look

As stated in a previous article, a captive insurance company is first and foremost in the insurance business and should not be viewed as purely a tax planning vehicle. However, tax saving opportunities can exist with captive insurance companies and these benefits should be enjoyed when the arrangement is properly structured. The following is one example of how this might work.

Bennett Thrasher Sponsors the Vermont Captives Insurance Association Road Show in Atlanta

Bennett Thrasher is proud to be a sponsor of the Vermont Captive Insurance Association Road Show in Atlanta on October 16 where shareholder Anton Hayward will provide the opening remarks. The day-long seminar, entitled “Strategic Advantages of Captives,” focuses on the basics of captive insurance companies; the reasons for formation; the feasibility process; and key issues in putting a successful captive program together.

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