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15 March 2021Accounting & tax analysis

Be patient with the IRS, urges Carr Riggs and Ingram


Captive owners should be patient in their dealings with agents from the Internal Revenue Service (IRS), according to Carr Riggs and Ingram (CRI), the accounting and advisory company.

Writing in a  note on its website, CRI said there are good reasons why the IRS may not have as much expertise in the field of captive insurance as some would like.

“Over the past decade, progressive budget cuts to the IRS agency have hindered the agency’s ability to provide sufficient training to its agents as a whole,” CRI said. “As such, the agency has been unable to provide more extensive training for the specialised field of insurance.”

In the last five years the IRS has aggressively targeted micro captives or 831(b) captives. In particular it has indicated it will focus on how captives allocate income and deductions and how transfer pricing is applied to foreign captive subsidiaries and transactions.


More on this story

Executive Appointments
29 June 2020   Like any other insurance company, a captive needs a strong board to provide the appropriate level of oversight. Scott Bailey of Carr, Riggs and Ingram outlines what boards do, and what characteristics to look for in prospective board members.
Feasibility studies analysis
4 February 2020   A captive can be a useful tool to help a company manage its risk, but they are not suitable for everyone. Scott Bailey from Carr, Riggs and Ingram outlines some of the factors prospective captive owners should consider before taking the plunge.
Accounting & tax analysis
9 January 2020   Establishing a captive programme can seem a daunting prospect, but there are many reasons for companies to make the effort. Steven Lorady of Carr, Riggs & Ingram discusses three of them.

More on this story

Executive Appointments
29 June 2020   Like any other insurance company, a captive needs a strong board to provide the appropriate level of oversight. Scott Bailey of Carr, Riggs and Ingram outlines what boards do, and what characteristics to look for in prospective board members.
Feasibility studies analysis
4 February 2020   A captive can be a useful tool to help a company manage its risk, but they are not suitable for everyone. Scott Bailey from Carr, Riggs and Ingram outlines some of the factors prospective captive owners should consider before taking the plunge.
Accounting & tax analysis
9 January 2020   Establishing a captive programme can seem a daunting prospect, but there are many reasons for companies to make the effort. Steven Lorady of Carr, Riggs & Ingram discusses three of them.