The entities involved in the case, including a microcaptive, were not insurance companies and did not provide insurance in the commonly accepted sense of distributing risk. As a result, deductions were disallowed and the microcaptive had to report premiums as gross income.
Tax Court denies microcaptive insurance arrangement
Sign up for CPA Letter Daily
The latest CPA news
Get the intelligence you need: news and information that is changing your industry today, hand-curated by our professional editors from thousands of sources and delivered straight to your inbox.