IRS takes next step on abusive micro-captive transactions; 12 new audit teams established

Abusive micro-captives have been a threat to tax administration and a concern to the IRS for several years. The transaction has appeared on the IRS “Dirty Dozen” list of tax scams since 2014. In 2016, the Department of the Treasury and IRS issued which identified certain micro-captive transactions as having the potential for tax avoidance and evasion.