A ruling on a lawsuit filed against a Phoenix-area jeweler owning private insurance may determine the future strategies of entrepreneurs and small-business owners who have set up their own insurance companies to cover all manner of risk. Some small captives are coming under scrutiny when the insurable risks are being used as a way to sidestep taxes, since few, if any, claims are paid out. The monies paid into the captive can be transferred to heirs at greatly reduced tax rates. The IRS is using the captive set up by these Phoenix-area jewelers to challenge the validity of some small captives.
Small, Private Insurers Face Increasing Scrutiny on Avoided Taxes
This is a great example of enterprise risk.
Please contact us at Contact@OxfordRMG.com or 410-472-6490 to speak with one of our captive research specialists!