DEFENDING CAPTIVE INSURANCE COMPANIES

By Sean G. King, JD, CPA, MAcc

Principal, CIC Services, LLC

Congress believes that placing captives on an even playing field with third-party insurers makes business and tax sense.  The Service, however, is increasingly devoting resources to scrutinizing potential abuses.  This outline focuses upon how to form and operate a captive to withstand an audit by the Service as well as how to defend captives under attack.