Attorney Who Understands Captive Insurance Litigation Cases

Former IRS Chief Counsel attorney Cal Bomar and the lawyers at Bomar Law Firm assist clients who are undergoing an audit relating to a captive insurance company, and who have cases in U.S. Tax Court or U.S. District Court relating to captive insurance companies. The firm also works extensively on cases involving the allegation of malpractice or negligence by promoters or attorneys who have set up captive insurance companies for clients.

Bomar Law Firm's principal office is located in Atlanta, Georgia. However, the firm assists clients in tax matters throughout the United States and around the world.

Why Representation Is Necessary

Each year, the IRS lists a "dirty dozen" list of items that it considers abusive. For three years in a row, it has included the abusive use of "micro" captive insurance companies.

In Notice 2016-66, the IRS acknowledged that some taxpayers may use captive insurance companies that make elections under Section 831(b) "for risk management purposes that do not involve tax avoidance."

The IRS is seeking to argue that some of these entities do not provide real insurance, and that the transactions have no "economic substance." Therefore, they assert that the IRS should be able to assess tax, interest and severe penalties against the captive insurance company and its insured. They will also seek penalties against promoters that are setting up these captives.

In addition to a disastrous tax result, there is also potential for criminal charges in certain cases.

In cases where an attorney or promoter sets up a captive insurance company negligently or fraudulently, they could have massive exposure for the damages that they caused to their client.

Let Us Help You

The IRS will be litigating captive insurance companies for the foreseeable future. For a detailed analysis of your captive insurance audit or case, or a malpractice claim related to a captive insurance company, contact Bomar Law Firm at 404-841-6561. Cal Bomar represents taxpayers in captive insurance cases as well as other tax controversies. The firm handles cases involving captive insurance company litigation and syndicated conservation easement litigation, guiding clients through IRS tax disputes and promoter malpractice cases, as needed.