IRS Fires Warning Shot for Audits on Small Businesses Using Captive Insurance

Should small-business owners be afraid of being held captive by 831(b) rule changes? Captive insurance has been a legal tax strategy for years, but the IRS is cracking down on bad actors.

(Image credit: svetikd)

As a CPA and a lawyer, I’m always gleaning what I can from the IRS’ communications. They’re never going to come right out and tell you what they’re thinking, what specifically is going to flag your business for a review or audit.

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Bruce Willey, JD, CPA
Founder, American Tax and Business Planning

Bruce Willey has been working with small to midsize businesses across the country for more than a decade, helping them navigate business and tax law in a variety of situations. His services include assisting with business start-ups, operations, growth, asset protection, exit planning and estate planning.