Daily Tax Report ®

IRS Wasn’t Able to Mail 10% of Intended ‘Micro’ Insurer Letters

June 18, 2020, 8:05 PM

The IRS wasn’t able to mail about 10% of the total letters it planned to send to small insurance companies it views as possible tax shelters.

The agency in March sent letters to owners of the companies, known as micro-captives, inquiring about the status of their operations and asking them to notify the IRS if they have stopped claiming deductions or other tax benefits for their arrangements. The agency also advised the letter recipients to consider consulting an independent tax adviser and possibly amending prior returns.

  • “We will be sending those soon,” Douglas O’Donnell, commissioner of the IRS’s Large...
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