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!

Prabal Lakhanpal

Latest posts by Prabal Lakhanpal (see all)
- The Benefits of an Employee Benefits Captive - January 11, 2021
- Placing Medical Stop-Loss Coverage in a Captive - January 4, 2021
- Large Companies and Medical Stop-Loss - May 21, 2020
- The Benefits of Employee Benefits in a Captive - April 22, 2020
- 3 Unique Use Cases for Captives, From VCIA 2019 - September 25, 2019