CrossCountry Mortgage LLC is fighting the IRS’ treatment of its microcaptive insurance program, arguing it is indeed bona fide and qualifies the company for its claimed deductions.
The large Cleveland-based mortgage lender petitioned the US Tax Court, contesting the IRS’s decision disallowing deductions for the premiums paid to the program, which increased the company’s taxable income by about $5.3 million.
In a microcaptive arrangement, a company creates a related entity to serve as a self-insurer. Companies typically rely on this arrangement if they have a unique risk profile that isn’t served by other insurance products on the market. The IRS ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.