By: Sean King, JD, CPA, MAcc
Principal & In-House Counsel, CIC Services, LLC
Question: Is it reasonable and legitimate for policy premiums paid to a captive insurance company to be higher than typical premiums paid for “similar” commercial insurance?
A typical attack leveled by the I.R.S. against captive insurance companies to suggest evidence of a sham transaction is that the premiums paid are “exorbitant.” Not surprisingly, the I.R.S. doesn’t clarify or define what Continue Reading