Captive Insurance Companies: Risk Mitigation for Closely Held Entities

Microcaptives, Risk Pools, Notice 2016-66, Current Cases, and Withstanding IRS Scrutiny

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

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Wednesday, January 11, 2023

1:00pm-2:50pm EST, 10:00am-11:50am PST

Early Registration Discount Deadline, Friday, December 16, 2022

or call 1-800-926-7926

This webinar will discuss tax saving opportunities utilizing insurance for family offices and closely held entities. The panelist will cover captive and microcaptive insurance requirements, group pools, current IRS litigation, and ensuring a business' captive is a qualified insurance company.


Captive insurance companies are wholly owned by a parent company and are used to insure the liabilities of the owners and related entities. Historically, large companies have used these insurance companies to provide coverage that could not be obtained elsewhere or was exorbitantly priced when found. Now that many small companies have established captive insurance companies for the tax benefits, they are being ardently scrutinized by the IRS.

Captive entities allow owners to obtain insurance at a lower cost and deduct the premiums paid. Like other insurance companies, they are subject to state regulatory requirements. Qualifying microcaptives are taxed only on their investment income and not the premiums received. To qualify, the microcaptive must receive less than $2.45 million (2022) in gross premiums. Not all microcaptive insurance companies are abusive. Tax practitioners working with closely held entities need to be sure the entity does indeed qualify as an insurance company for federal income tax purposes.

Listen as Stuart Anolik, Partner at FisherBroyles, reviews insurance strategies to mitigate risk for closely held businesses and their owners.



  1. Risk mitigation strategies for closely held businesses
  2. Insurance opportunities
    1. Captive insurance
    2. Microcaptives
    3. Group pool
  3. Notice 2016-66 and recent cases invalidating the Notice
  4. IRS litigation over the past five years
  5. Congressional view versus IRS view
  6. Examples of bona fide insurance


The panelist will cover these and other critical issues:

  • How to ensure a captive insurance company meets the guidelines of being an insurance company
  • Using risk pools to spread risks
  • Preparing a captive insurance company to withstand an IRS examination
  • Gleaning guidance from recent cases
  • Identifying types of business and individuals that could benefit by forming a captive


Anolik, Stuart
Stuart Anolik


Mr. Anolik has handled client matters involving international investment and finance, intellectual property migration,...  |  Read More

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