Captive insurance taxation, especially micro-captive taxation, evolves quickly. The information herein may be dated. Please review our “Disclaimer” page about using or relying upon information herein.
Click on the links below for detailed guidance on important tax issues impacting captives, including this October 2015 article about favorable tax court cases supporting the use of small 831(b) captive insurance companies, particularly when the primary purpose is to improve risk management. For a good primer on why the IRS is concerned about the growing use of 831(b) micro captives, read this February 2015 article.
For an update on 2016 legislative developments that could restrict opportunity for utilizing 831(b) qualifying enterprise risk captive insurance companies by family owned businesses, click here.
Click here to read a short primer article written by two lawyers on the importance of the business purpose and economic substance behind exploring the pros and cons of creating a captive insurance company.
