6 April 2022

CIC Services urges businesses to enter microcaptive battle

CIC Services has urged businesses across the US to stand up to “IRS tyranny”, following recent decisions striking down its application of the law concerning microcaptives.

In an update on its website, Randy Sadler accused the tax authority of having “illegally abused power and abused honest business owners and taxpayers at an alarming rate”.

“Now is the time to stand against IRS tyranny,” he writes and links readers to a “rallying cry” by Services’ Founding Principal, Sean King, discussing the issue.

CIC Services is urging businesses to lobby Congress to take action to tackle what it describes as an “improper and illegal terror campaign” by the IRS over microcaptives. It has provided a  specimen letter for them on its website.

The call follows several judicial setbacks for the IRS, most recently with the District Court of Eastern Tennessee finding that it had acted “ arbitrarily and capriciously” in designating microcaptive arrangements as “transactions of interest”.