IRS Micro-Captive Court Victories Spur Settlement Speculation
The Internal Revenue Service (IRS) has claimed its third consecutive victory in a case involving micro-captive insurance, an abusive insurance arrangement. The IRS has more than 500 micro-captive cases at the Tax Court and there is speculation that there will be a global settlement initiative due to the large number of cases.
Tax Attorney Lawrence Kemm commented on the volume of micro-captive insurance cases docketed. Mr. Kemm stated, "When you look at the amount of time it takes for one of these case to get through the system, I don't see how they possibly have the resources to try and bring to decision over 500 captive insurance cases."