IRS Audits Focus on Captive Insurance Plans
IRS Attacks Business Owners that participate in a 419 plan, 412i plan, Section 79 or a Captive Insurance. Under Section 6707A
Taxpayers who previously adopted any of the following plans, 419, 412i, captive insurance or Section 79 are in trouble.
In recent years, the IRS has identified many of these plans as abusive devices to funnel tax deductible dollars to shareholders and classified these arrangements as listed transactions.