RMC emerges victorious against IRS in micro captive case
RMC Group has announced that it has emerged victorious in what it says is a landmark case involving the Internal Revenue Service (IRS) challenging RMC’s management of small captive insurance companies.
In a jury verdict entered on April 4, 2024, the jury rejected the IRS's claims that the captives managed by RMC were not real insurance companies.
Since the start of this protracted legal dispute, which RMC said involved 14 years of ‘tenacious legal proceedings’, RMC said that it has: “steadfastly maintained the integrity and authenticity of its captive insurance practices. The government's scepticism towards the status of the insurance entities under RMC's management was met with unwavering resolve and a commitment to due diligence.”
According to RMC the case is a ‘significant milestone’ for both the firm and the broader captive insurance industry, as the jury's decision establishes a precedent. RMC said that it is the first captive manager to prevail against the IRS in court on this issue, adding that it marks a pivotal moment in the ongoing dialogue surrounding compliance in the management of captive insurance companies.
The jury's verdict underscores RMC's dedication to operating within the bounds of regulatory guidance and industry best practices, the firm said. Despite the complexities and uncertainties surrounding captive insurance, the jury recognised RMC’s diligent efforts to navigate these challenges with the information and guidance available at the time.
“We are immensely gratified by the jury's decision, which validates our longstanding commitment to ethical business practices and regulatory compliance,” said Ray Ankner, president and chief executive of RMC. "This victory not only vindicates our position but also reinforces the importance of clarity and collaboration in regulatory frameworks.”
The company concluded: “RMC extends its profound gratitude to its legal team (Matthew Reddington and Janine M. Campanaro at Zerbe, Miller, Fingeret, Frank & Jadav, LLC) and supporters whose unwavering dedication and expertise were instrumental in securing this triumph. Moving forward, RMC remains steadfast in its mission to deliver innovative risk management solutions while upholding the highest standards of integrity and accountability.”
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