What You Should Know
Recently, the Courts ruled that Syzygy Insurance Company (“Syzygy”), a micro captive created by Highland Tank & Manufacturing Co. and its Associates (“HT&A”) did not qualify as an 831(b) micro-captive entity between the years of 2009 and 2011. Federal courts have been especially assertive outlining bad fact patterns for certain captives, as seen in similar case results such as Avrahami v. Commissioner (“Avrahami”) and Reserve Mechanical Corp v. Commissioner (“Reserve”).
Understanding the criteria and results of these court rulings is imperative to ensure that your clients’ captives, or even your own, are appropriately managed and operated.
In this whitepaper, we outline an in-depth analysis of the court case and decision, and provide you with a checklist for ensuring compliance and validity for your captive, no matter its size. Download to learn more about:
- Circular flow of Funds
- Arm’s-Length Contract
- Valid and Binding Policies
and more, so that your captive isn’t the next one getting negative press!
Latest posts by Prabal Lakhanpal (see all)
- 3 Unique Use Cases for Captives, From VCIA 2019 - September 25, 2019
- Syzygy Insurance Co. v. Commissioner of Internal Revenue - June 13, 2019
- CICA 2019: Preparing for the Future by Learning from the Past - April 10, 2019
- 7 Ways Captives Provide Clients a Competitive Edge - October 23, 2018
- What You Need to Know About RFP’s - August 27, 2018