Bloomberg Tax Quotes Matt Mueller On IRS Scrutiny Of Micro-Captive Insurance Companies
Wiand Guerra King shareholder Matt Mueller recently discussed developments in the IRS’ ongoing crackdown of abusive micro-captive insurance arrangements with Bloomberg Tax. Micro-captive structures take advantage of Section 831(b) of the Internal Revenue Code which allows captive insurance companies with $2.2 million or less in premium income to be taxed only on investment income. The IRS crackdown relates to abusive micro-captive arrangements where the Service believes the captive is not serving a legitimate business purpose, i.e. insuring actual business risks, but merely serving as a tax avoidance vehicle.
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