Some captive “experts” argue that captives should be managed as much as possible like third party, commercial insurers in order to increase the odds of surviving IRS attack.  Specifically, they argue that captives should look to the standards of third party, commercial insurers when making such decisions as setting premiums, establishing reserves, deploying assets, etc. […]

Tax avoidance is perfectly legal and encouraged by the IRS, but tax evasion is against the law. –         Internal Revenue Service Website   Business owners across America mailed checks to the IRS last week.  Parting with hard earned profits certainly isn’t easy.   Which begs the question, to what lengths should business owners and professionals go […]

Last week, we noted that the Internal Revenue Service suffered another defeat on January 14, 2014 as the U.S. Tax Court handed down its ruling which upheld that payments by Rent-A-Center to its Bermuda-domiciled captive insurance company, Legacy Insurance Co. Ltd., were deductible as an insurance expense. This ruling is particularly informative to captive owners […]

We’ve seen this movie before. Tax Man, The IRS Loses Its Challenge Against A Captive. Tax Man 2 – The Sequel – The IRS Loses Again In A Captive Challenge. Tax Man 3, The IRS Strikes Back… And Loses Again. Tax Man 4, This Time It’s For Keeps But The Captive Owner Wins Yet Again.

You have probably heard the story about legendary New York Yankees slugger, Babe Ruth, pointing to the center field wall.  It was the fifth inning of Game 3 of the 1932 World Series at Wrigley Field in Chicago.  As it was late in his career, the Home Run King had lost some of his punch.  […]