Third Circuit Court of Appeals Affirms District Court Regarding IRS Subpoena

May 4, 2023

A US appeals court recently upheld a lower court ruling that the Delaware Department of Insurance must comply with an IRS subpoena for captive information. The case is part of ongoing IRS scrutiny of captive insurance companies opting to be taxed under section 831(b) of the Internal Revenue Code. Read More

Appeals Court Denies Delaware Bid To Block IRS Micro-Captive Summons

April 26, 2023

A federal appeals court has ruled against the Delaware Department of Insurance's efforts to block a summons from the Internal Revenue Service (IRS) for information about Delaware-domiciled captive insurance companies. A lower court had earlier denied the Delaware department's motion to quash the summons, leading to the appeal. Read More

Analyzing Proposed Regulations Updating IRS Notice 2016-66

April 24, 2023

On April 10, 2023, the Internal Revenue Service (IRS) issued proposed regulations addressing micro-captive insurance transactions that must be reported as either a listed transaction or other transaction of interest. The IRS previously issued guidance on this topic (Notice 2016-66), which a Tennessee federal district court recently invalidated. Read More

Treasury, IRS Propose Regulations Targeting Micro-Captive Transactions

April 12, 2023

The US Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations identifying certain micro-captive transactions as "listed transactions" and certain other micro-captive transactions as "transactions of interest." The move comes days after the IRS released its 2023 Dirty Dozen list, which included abusive micro-captive transactions. Read More

Micro-Captives, Foreign Captive Insurance on IRS 2023 Dirty Dozen List

April 6, 2023

The Internal Revenue Service (IRS) has released its 2023 Dirty Dozen list, and once again, micro-captives and Puerto Rican and foreign captive insurance are included on the list. The IRS said the list is meant to alert taxpayers, businesses, and tax professionals of potentially abusive tax arrangements and scams. Read More