Utah Insurance Company Seeks to Nullify IRS Microcaptive Notice

The IRS is relying on illegal guidance for microcaptive insurance companies to deny legitimate tax breaks, one such microcaptive told the Tenth Circuit.

Standard Insurances Co., a microcaptive insurance company owned by the Reese Family 101 Trust, told the circuit that the IRS improperly relied on Notice 2016-66, which requires microcaptive insurance companies and entities they insure to report some sensitive information. The agency audited Standard Insurances and assessed it more taxes on the assertion that it was not actually an insurance company, a case still pending before the US Tax Court.

“The IRS broke the law” by failing to ...