The IRS has made itself quite unpopular in the captives industry with its pronounced distrust of 831(b)s. US Captive talks to Amy Lewis from Captive Resources about its view of the recent controversy.
Excerpt: Recent announcements by the Internal Revenue Service (IRS) that it is viewing 831(b) captive insurance companies with additional scrutiny have caused no small amount of worry in the captives industry. However, it’s worth remembering that the concept of 831(b)s, or micro captives, remains a sound one.
“We have found that 831(b)s give our clients the chance to further explore alternative risk opportunities and risk management in their respective companies, which allows them the flexibility to better manage some of their insured costs,” says Amy Lewis, vice president of finance at independent captive consultant Captive Resources.
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