Our Blog – Portsmouth NH

Captive Insurers’ Court Losses May End Tax Planning Method

Captive Insurers’ Court Losses May End Tax Planning Method

May 06, 2019
Internal Revenue Service enforcement actions against in-house insurers that elect not to pay tax on premiums.
The Avrahamis Lose in Tax Court

The Avrahamis Lose in Tax Court

Sep 06, 2017
n August 21, 2017, the U.S. Tax Court decided against an 831(b) captive and its owners in a consolidated opinion on two eagerly anticipated cases, Avrahami v. Commissioner and Feedback Insurance Company, Ltd. v. Commissioner (Docket Nos 17594-13, 18274-13). 149 T.C. No. 7. The decision is significant in that it represents the first time any court has decided a case involving a captive that has made an election under section 831(b) of the Internal Revenue Code of 1986, as amended.