It’s been said that a dog returns to its vomit, and this is certainly true of the IRS and its 2016 “dirty dozen” publication, which once again includes “abusive” varieties of captive insurance companies on its list of scams. We don’t joyfully look for opportunities to cross swords with the IRS. However, when the Service’s pronouncements smell more like
[The below is a parody designed to make an important point. It is NOT intended to reflect on the character or motives of any actual managers of protected cell, segregated cell or incorporated cell captive insurance companies. Rather, it is designed to emphasize that, in some cell captive structures, the interests of the captive manager
I was watching basketball this weekend and was rather amused by the antics of the home team’s crowd, whenever the visiting team was shooting free throws. The home team’s student section and cheerleaders were behind the basket, screaming wildly and waving foam noodles behind the see-through plexi-glass backboard. Despite all the racket, most opposing players sank their free throws, and as I watched, I was reminded of playing basketball in grade school. My coach always said, “focus on the front of the rim and paint a black X there in your mind… and just float the ball just over the top half of the X.” I wish I could say it worked every time, but I can say that it worked often. The key was to focus on what was important and not get distracted by everything else.
Well, there have certainly been a lot of distractions surrounding captive insurance companies (CICs) and the 831(b) “small captive” tax election
We interrupt our regularly scheduled programming for this Obscene Captive Domicile Growth Report. Despite the IRS putting captive insurance companies (CICs) on its “dirty dozen” list for 2015 (CLICK HERE to read about captives and the “dirty dozen”), the captive industry continues to grow, largely fueled by up-and-coming domiciles in the United States. Here are just a few recent