IRS Announces Global Settlement for Some Micro-Captive Insurers

The IRS is giving some taxpayers who dodged tax liabilities using a particular type of insurance arrangement the option to come clean and settle with the agency.

The time-limited global settlement initiative was announced Sept. 16 in an Internal Revenue Service news release. It follows the agency’s three consecutive Tax Court wins in cases involving these arrangements, known as micro-captives.

• The settlement will only be available to certain taxpayers currently under audit. The IRS said it would be notifying those taxpayers of the terms of the settlement by letter.
• The agency recently started sending notices to up to ...