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Tax Analysts Series on Captive Insurance
The Tax Analysts Service -- the leading tax analysis service in the country -- has asked us to write a concise history of captive insurance litigation, in addition to commenting on current issues related to captive insurance.
The Captive Insurance Case Law Timeline Series
The Captive Insurance Case Law Timeline: The IRS Victories, published November 3, 2014
The Captive Insurance Timeline: The Tide Turns for Taxpayers, published March 16, 2015
The Captive Insurance Timeline: The Risk of Risk Distribution, published October 19, 2015
Other Articles on Captives
IRS Loses Case on Good Taxpayer Facts, published November 17, 2014
Captive Guidance After the "Dirty Dozen" Listing, published June 8, 2015
The RVI Case: Court Deference To State Regulators & Outside Advisers Blunts The IRS Attack
| cv_issue_7_cantley_stewart.pdf |
The Use of Captive Insurance in the Medical Services Industry
| medical_company_use_of_cic_.pdf |
The Use of Captive Insurance In the Financial Services Industry
This article originally appeared in the Journal Journal of Taxation and Regulation of Financial Institutions.
This article originally appeared in the Journal Journal of Taxation and Regulation of Financial Institutions.
| the_use_of_captive_insurance_companies_in_the_financial_services_industry.pdf |
Presentation To the Montana Captive Insurance Conference
The Evolving Tax Environment for Captive Insurance Companies.
The Evolving Tax Environment for Captive Insurance Companies.
| mt_slides_7-15-15.pptx |
Recent Presentations
Below are the slides from our recent presentation to the American Conference Institute's Captive Insurance Conference, which took place in New York City on April 23-24, 2014. We explained how the subjective and objective factors of the economic substance doctrine apply to captives, along with the status of recent IRS enforcement actions.
Below are the slides from our recent presentation to the American Conference Institute's Captive Insurance Conference, which took place in New York City on April 23-24, 2014. We explained how the subjective and objective factors of the economic substance doctrine apply to captives, along with the status of recent IRS enforcement actions.
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Captive Visions e-Magazine
Beckett and Hale are regular contributors to the Captive Visions eMagazine, available from CaptiveGlobal.com
Beckett and Hale are regular contributors to the Captive Visions eMagazine, available from CaptiveGlobal.com
Beckett G. Cantley & F. Hale Stewart Captive Guidance After the 'Dirty Dozen Listing," Tax Analysts, June 6, 2015
This article uses recent IRS pronouncements to determine permissible captive structures.
This article uses recent IRS pronouncements to determine permissible captive structures.
| post_dirty_dozen_planning.pdf |
Relearning the Lesson: IRS Judicial Doctrine Attacks on the Captive Insurance Company Pre-Planned Tax Deductible Life Insurance Tax Shelter
Beckett G. Cantley Houston Business and Tax Law Journal, 2015, Forthcoming
Beckett G. Cantley Houston Business and Tax Law Journal, 2015, Forthcoming
| relearning_the_lesson.pdf |
Beckett G. Cantley & F. Hale Stewart, The IRS & SFC Anti-§ 831(b) Actions: Targeted or Broad Based?, Captive Visions Magazine Online (February 2015).
Summary: In this article published in Captive Visions Magazine Online, Prof. Cantley and F. Hale Stewart discuss the recent listing of certain captive transactions on the IRS Dirty Dozen list as well as the U.S. Senate Finance Committee hearings on captive insurance.
| irs-sfc-broad-based_.pdf |
Beckett G. Cantley, Risks Posed by the IRS Offshore Crackdown and Recent Case Law to International IRC 831(b) Captive Insurance Companies, Cayman Financial Review (January 15, 2014).
Summary: In this article published in the Cayman Financial Review, Prof. Cantley discusses several of the current IRS compliance issues specifically facing captive insurance companies formed in foreign jurisdictions.
| risks-posed-by-the-irs-offshore-crackdown-and-recent-case-law-to-international-irc-831b-captive-insurance-companies.pdf |
Beckett G. Cantley & F. Hale Stewart, What is Anti-Avoidance Law, and How Might it be Used by the IRS?, Captive Visions Magazine (October 2014).
Summary: In this article published in Captive Visions Magazine, Prof. Cantley and F. Hale Stewart discuss the basic tenets of anti-avoidance law, as well as some of the ways the IRS might apply them to the captive insurance industry.
| what-is-anti-avoidance-law-and-how-might-it-be-used-by-the-irs.pdf |
Beckett G. Cantley, Can an IRC § 831(b) Captive Insurance Company Become an Impermissible Virtual IRA?, Captive Visions Magazine (July 2014).
Summary: This article published in Captive Visions Magazine discusses how the IRS may take issue with investments being the driving force for the formation of a captive insurance company (CIC).
| virtual_ira.pdf |
Beckett G. Cantley & Bruce G. Luna, Captive Insurance Company Premium Loan Backs: Proper Investment or Improper Return of Capital?, Captive Visions Magazine (March 2014).
Summary: This article by Profs. Cantley and Luna discusses the risks inherent in a captive insurance company (CIC) loaning paid-in premiums back to the joint owners of the CIC and insured business. March 2014
| loan_backs.pdf |
Beckett G. Cantley & F. Hale Stewart, Current Tax Issues with Captive Insurance Companies, The Business Lawyer (ABA Business Law Section), January 2014 (online edition).
Summary: In this article published with the American Bar Association, Prof. Cantley and F. Hale Stewart provide an overview of several current IRS compliance issues with captive insurance companies.
| current-tax-issues-with-captive-insurance-companies-business-law-section.pdf |
Repeat as Necessary: Historical IRS Policy Weapons to Combat Conduit Captive Insurance Company Deductible Purchases of Life Insurance
Beckett G. Cantley U. C. Davis Business Law Journal, Vol. 13, 2013
| repeat_as_necessary.pdf |
Beckett G. Cantley, Steering Into the Storm: Amplification of Captive Insurance Company Compliance Issues in the Offshore Tax Crackdown, 12 Hous. Bus. & Tax L.J. 224 (2012).
Summary. This article provides: (1) a discussion on the compliance issues surrounding the use of CICs; (2) a detailed discussion of the progression of the IRS offshore crackdown; (3) an analysis of the rationales for choosing an offshore jurisdiction for forming a CIC; and (4) a discussion of the IRS crackdown’s potential negative effect on the choice to utilize an offshore IRC § 831(b) CIC.
| steering_into_the_storm.pdf |
Beckett G. Cantley, The Forgotten Taxation Landmine: Application of the Accumulated Earnings Tax to IRC § 831(b) Captive Insurance Companies, 11 Rich. J. Global L. & Bus. 159 (2012).
Summary. This article discusses: (1) the requirements, benefits, and tax attributes of an IRC § 831(b) captive insurance company (“CIC”); (2) an overview of the Accumulated Earnings Tax (“AET”) and the reasonable needs test which must be met to avoid the AET; and (3) the potential future application of the AET to an IRC § 831(b) CIC and the negative results that could arise if the IRS chooses to do so. Given that the IRS has yet to announce any policy about applying the AET to combat the growth of this popular tax arrangement, this article seeks to analyze how the IRS may prospectively make use of this tool and how CIC owners and managers should conduct themselves to not run afoul of the IRS.
| forgotten_landmine.pdf |