Regulation and Oversight

The Internal Revenue Service (IRS) has indicated that it's expanding its enforcement focus on abusive micro-captive schemes, encouraging taxpayers participating in micro-captive arrangements to consult an independent tax adviser ahead of the October 15 filing deadline. The IRS encouraged participants in such arrangements to consider exiting them. Read More

So-called "micro-captives" have been in the crosshairs of the Internal Revenue Service for several years. Now, a newly released report from the US Government Accountability Office warns that offshore micro-captives may be used for abusive tax schemes. Read More

Liability management company Gossmann & Cie. has been licensed to operate a protected cell company (PCC) in Malta. The PCC is fully operational and able to create customized cell-based solutions as well as manage the relevant insurance portfolios transferred to Gossmann & Cie., the company said. Read More

Micro-captives are not included in this year's Internal Revenue Service (IRS) "Dirty Dozen" list of "tax scams," though an IRS statement suggests the agency will continue monitoring the small captive insurance companies. It is the first time in 5 years that the IRS did not include micro-captives on its annual list. Read More

Captive insurance companies may serve as valuable tools for many organizations addressing pandemic-related risks in the wake of COVID-19, but regulators will closely scrutinize captives' pandemic coverage plans. Policy language, triggering events, coverage details, and reinsurance will be key considerations. Read More