Captive
Insurance

For those wishing to protect their captive, we’ll get you compliant. And for those facing an audit, we’ll be your defense.

Captive Insurance And The IRS

The IRS continues to heavily scrutinize captive insurance arrangements. Certain captive insurance types have consistently appeared, including in 2019, on the IRS’s “Dirty Dozen” list of tax scams to avoid. Micro-captives in particular have been identified as potential vehicles for illegal tax shelters and the IRS is keen to crack down.

If the IRS believes that a captive insurance company is claiming deductions for non-insurance activities they will litigate. This includes going after captive insurance companies that are claiming unreasonable premium deductions. If the captive insurance company cannot show that they are distributing risk, selling insurance, shifting risk, or whether transactions involved insurance risk then that captive could be a target for the IRS.

However, the IRS has started to evaluate possible abuses surrounding CICs, and has begun examinations in the area. For those businesses who are unprepared when facing examination, there can be consequences.

We’ll Get You Compliant

If you or your client wants to protect their CIC, the time to become compliant is now.
alliantNational’s team of experts helps with:

We’ll Be Your Defense

Already under audit? alliantNational will help you or your client avoid consequences from the IRS, including understatement and negligence penalties, as well as the potential unwinding of the captive formation and subsequent loss of benefits.

The time to act is now, and alliantNational can help defend your interests with:

We’ll Be Your Defense

If you or your client wants to protect their CIC, the time to become compliant is now.

alliantNational’s team of experts helps with:

“The IRS has only increased its scrutiny when handling captives. It’s an honor to use my experience with the agency to help businesses navigate the complex nature of captives.”

Captive
Insurance