IRC 831(b) Micro-Captives: Avoiding IRS Scrutiny, Diversification Requirements, Effective Transaction Structures
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax counsel, and advisers with practical tools and guidance to ensure that clients utilizing micro-captive insurance companies are fully compliant with IRC Section 831(b) rules to preserve legitimate tax deduction of premiums. The panel will discuss tax benefits and compliance burdens to micro-captives and offer detailed guidance on structuring micro-captives to be fully compliant with Section 831(b) requirements.
Outline
- Recent cases
- Anti-avoidance law
- Substance over form
- Business purpose
- Economic substance
- IRS broad enforcement capabilities
Benefits
The panel will review these and other important questions:
- Risk shifting and distribution
- IRS enforcement areas in micro-captives, including excessive premiums and risk definition
- 831(b) structuring issues and complaince challenges
- Diversification requirements and tests
- Response to IRS challenges of 831(b) micro-captive structures
Faculty
Alan J. Fine, CPA, JD
Tax Partner and Insurance Industry Group Leader
Brown Smith Wallace
Mr. Fine specializes in the taxation of insurance companies. He has 24 years of tax experience and has worked closely... | Read More
Mr. Fine specializes in the taxation of insurance companies. He has 24 years of tax experience and has worked closely with insurance companies for 22 years. Prior to joining Brown Smith Wallace, Mr. Fine was a senior manager with a national accounting firm. He is responsible for serving insurers writing fidelity, personal and commercial lines; medical and life insurance; other professional malpractice coverages; and captive insurance companies.
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David E. Foate
Attorney, Certified Specialist, Taxation Law
Gresham|Savage
Mr. Foate concentrates his practice on the tax complexities inherent in his clients’ US and international... | Read More
Mr. Foate concentrates his practice on the tax complexities inherent in his clients’ US and international corporate affairs. He represents clients in federal, state, and local tax controversies including audits, reassessments and tax related civil litigation. Mr. Foate also works pro-actively with business owners, their tax preparers, and their families to develop customized practical solutions that best accommodate their general business needs as well as their long term trust and estate planning goals.
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David J. Warner
Tax Attorney, Shareholder & Managing Principal
Holtz, Slavett & Drabkin
Mr. Warner is a Tax Attorney and the Managing Attorney of the Orange County Office of Holtz, Slavett &... | Read More
Mr. Warner is a Tax Attorney and the Managing Attorney of the Orange County Office of Holtz, Slavett & Drabkin. He has over 10 years of experience practicing in all aspects of tax controversy including tax audits, collection defense, and litigation in the U.S. Tax Court, U.S. District Court, and the Court of Federal Claims. He represents taxpayers in cases involving income tax, estate tax, gift tax, employment tax, collection issues, innocent spouse, penalties, and bankruptcy tax issues. He also represents taxpayers before the California Franchise Tax Board (FTB), Department of Fee and Tax Administration (CDTFA, formerly State Board of Equalization (BOE)), and Employment Development Department (EDD). He has particular expertise in tax matters involving individuals and small businesses, the examination of partnerships and S corporations, and offshore tax compliance issues, including the Report of Foreign Bank and Financial Accounts (FBAR), civil fraud, and offshore information return penalties.
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