The IRS has called on an Arizona district court to enforce a summons on a captive insurance company it is investigating for potential tax avoidance.
The IRS filed suit at the US District Court for the District of Arizona against Coral Beauty Insurance PCC, an Arizona captive insurance company, to investigate its potential participation in allegedly abusive micro-captive insurance transactions with Radiologic Associates of Northwest Indiana PC. The IRS has been targeting deals involving small insurance companies that can achieve a lower tax rate if the income received from their premiums doesn’t exceed $2.3 million.
Following an IRS examination on ...