Taxation

Fifth Circuit Holds for IRS in Swift Captive Insurance Case

July 23, 2025

The Fifth Circuit affirmed the Tax Court’s decision in Swift v. Commissioner, rejecting the captives' risk distribution arguments and finding flaws in the pooling arrangement. The court also upheld 20 percent Internal Revenue Service (IRS) penalties for negligence and substantial understatement under section 6662 of the Internal Revenue Code. Read More


831(b) Institute Urges Repeal of IRS Rule on Micro-Captives

June 20, 2025

The 831(b) Institute and industry groups are challenging new Internal Revenue Service (IRS) regulations that label many micro-captive insurance arrangements as listed transactions. They argue the rules revive issues from the vacated Notice 2016–666, conflict with the Protecting Americans from Tax Hikes Act, and unfairly burden legitimate 831(b) captives used for small business risk management. Read More


Tax Compliance and Structuring Tips for Captive Insurance Companies

June 11, 2025

Allan Autry of Johnson Lambert joins The Edge of Risk to explain tax qualification, compliance pitfalls, and evolving strategies in the captive space. Learn how federal and state standards diverge, when captives may not need tax status, and how to future-proof your structure against regulatory challenges. Read More


CIC Services Files Second Lawsuit Against IRS over Micro-Captive Rules

April 16, 2025

Captive manager CIC Services has filed a second lawsuit against the Internal Revenue Service (IRS) looking to invalidate an IRS rule targeting micro-captives. CIC Services says the rule is regulatory overreach by the IRS and that the new rule mirrors an earlier regulation that was struck down in court. Read More


Tax Court Again Considers an IRC Section 831(b) Case and Rules in Favor of the Internal Revenue Service

April 2, 2025

The Tax Court in Genie R. Jones v. Comm’r ruled against a captive insurer electing 831(b) status, citing lack of risk distribution, non-arm's-length premiums, and failure to operate as a bona fide insurer. The decision continues a pattern of unfavorable rulings where captives lack key elements of valid insurance operations. Read More