On November 4, alliantgroup’s National Director of Tax and former IRS Acting Commissioner Steven Miller was quoted in the Daily Tax Report regarding a notice from the Service with respect to a significant number of micro-captive insurance arrangements.
In Allyson Versprille’s article “Is ‘Micro-Captive’ Insurer Guidance the IRS’s Nuclear Option” Versprille discusses the notice released earlier this month that listed section 831(b) micro-captives as “Transactions of Interest.” Such a designation will require that captive insurance companies, insured parties and certain owners, and other involved parties and advisors (including captive managers) meet certain disclosure and recordkeeping requirements by January 30, 2017 or face heavy penalties. The notice will have a tremendous and immediate impact on the industry, with the article noting that up to 90 percent of 831(b) captives could be affected by the new IRS guidance.
When asked to comment, Miller had this to say with respect to the notice and ongoing captive insurance litigation:
When the guidance was issued, Steven Miller, a former acting IRS commissioner who now works as the national director of tax at Alliantgroup LP, questioned why the agency didn’t wait for the final ruling in an ongoing U.S. Tax Court case, Avrahami v. Commissioner.
Next Steps
On Wednesday, November 30, Steven Miller will be joined by Kathy Petronchak, former IRS Commissioner of the Small Business/Self-Employed Division and alliantgroup Director of IRS Practice & Procedure as well as alliantgroup Managing Director of Tax Controversy John Dies to discuss the new IRS guidance and the steps those involved in micro-captive insurance arrangements should be taking to remain compliant with IRS standards.
alliantNational, alliantgroup’s national practice, provides subject matter expertise on complex and emerging federal, state and international tax issues as well as legislative and regulatory affairs to help businesses receive timely and precise guidance on all their tax matters. Contact us today to learn how your business can benefit from alliantgroup’s tax consulting services.
