February 11, 2021

IRS Targets Micro-Captives: Participants Should Act Now

Client Alert
Abbey Benjamin Garber | Katie Erin Gerber | Marc Grossberg | Mary A. McNulty | Lee Susan Meyercord | Jackson Oliver

Certain small or “micro” captive insurance company transactions (“micro-captives”) remain a high-priority enforcement issue for the Internal Revenue Service (“IRS”). After success in court, the IRS offered two time-limited settlement opportunities to certain micro-captive participants. Future IRS settlement opportunities will be less favorable to taxpayers. Targeted micro-captive participants should consult an independent tax advisor and take steps now to assess and mitigate their exposure.

READ: IRS Targets Micro-Captives: Participants Should Act Now

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