BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Monday, December 18, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE course will provide tax counsel and advisers with practical tools and guidance to ensure that clients utilizing micro-captive insurance companies are fully compliant with IRC Section 831(b) rules to preserve legitimate tax deduction of premiums. The panel will discuss tax benefits and compliance burdens to micro-captives and offer detailed guidance on structuring micro-captives to be fully compliant with Section 831(b) requirements.

Faculty

Alan J. Fine
Tax Partner
Armanino, LLP

Mr. Fine specializes in the taxation of insurance companies. He has 24 years of tax experience and has worked closely with insurance companies for 22 years. Prior to joining Brown Smith Wallace, Mr. Fine was a senior manager with a national accounting firm. He is responsible for serving insurers writing fidelity, personal and commercial lines; medical and life insurance; other professional malpractice coverages; and captive insurance companies.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Kevin Oveisi
Attorney
Holtz, Slavett & Drabkin, APLC

Mr. Oveisi is a tax attorney with Holtz, Slavett, & Drabkin. Kevin has experience practicing in all aspects of tax controversy including income tax, estate tax, gift tax, employment tax, collection issues, penalties, and litigation in the U.S. Tax. Court. He represents clients in tax audits, collection defense, and litigation before the Internal Revenue Service, California Franchise Tax Board, Department of Fee and Tax Administration (formerly State Board of Equalization), Employment Development Department, and in the U.S. Tax Court and U.S. District Court. Mr. Oveisi has particular experience in tax matters involving Micro-Captive Insurance, Non-Cash Charitable Contributions, collection due process, and civil fraud.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The use of captive insurance companies, particularly Section 831(b) "micro-captives," has come under increased IRS scrutiny. The Service has explicitly recognized micro-captives as a legitimate form of risk protection but has expressed concern that these vehicles are being used more as a wealth transfer device than legitimate insurance. The IRS has even more interest in abusive micro-captive arrangements after the U.S. Tax Court and Sixth Circuit Court of Appeals invalidated IRS Notice 2016-66 and, in response, the IRS issued new proposed regulations in April 2023.

Micro-captives will continue to be used and likely will increase in frequency and the IRS will likely step up its examinations of micro-captive arrangements. An IRS examination of micro-captives "may result in full disallowance of claimed micro-captive insurance deductions, inclusion of income by the captive entity, and imposition of applicable penalties."

Tax counsel and advisers must be aware of the challenging and potential pitfalls of structuring micro-captives.

Listen as our experienced panel discusses recent IRS examination initiatives for micro-captives and offers techniques for utilizing captives to manage and reduce a company's risk of IRS scrutiny.

Outline

  1. Recent cases and proposed regulations
  2. Anti-avoidance law
    • Substance over form
    • Business purpose
    • Economic substance
  3. IRS broad enforcement capabilities

Benefits

The panel will review these and other important questions:

  • Risk shifting and distribution
  • IRS enforcement areas in micro-captives, including excessive premiums and risk definition
  • 831(b) structuring issues and compliance challenges
  • Diversification requirements and tests
  • Response to IRS challenges of 831(b) micro-captive structures

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify potential IRS issues with Section 831(b) micro-captive insurance companies
  • Comply with the rules regarding prohibiting excessive premiums and prearranged deduction schemes
  • Understand the IRS requirements for captives to have "insurance risk," risk shifting, and risk distribution

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex income tax forms and schedules for partnerships and pass-throughs; supervisory authority over other preparers/accountants. Knowledge and understanding of private and captive insurance company structures, familiarity with self-insurance regulations and risk identification processes.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).