Micro-captive Insurance Schemes
IRS expands enforcement focus on abusive micro-captive insurance schemes.
WASHINGTON — With the October 15 filing deadline quickly approaching, the Internal Revenue Service today encouraged taxpayers to consult an independent tax advisor if they participated in a micro-captive insurance transaction.
The IRS encourages any taxpayer who has continued to engage in an abusive micro-captive insurance transaction to not anticipate being able to settle its transaction with the IRS or Chief Counsel on terms more favorable than previously announced. Any potential future settlement initiative that the IRS may consider will require additional concessions by the taxpayer.