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IRS Opens Promoter Investigations Office for 831(b) Micro Captives


IRS Opens Promoter Investigations Office For 831(b) Micro Captives

The 831(b) micro captives industry received more news this week from the US Treasury Department.  The IRS opens promoter investigations office to:

coordinate efforts across multiple business divisions to address abusive syndicated conservation easements and ‘abusive micro captive insurance arrangements as well as other transactions, according to IRS Commissioner Chuck Rettig. 

irs opens promoter investigations office emblem
Copyright IRS

I came across this article in Captive Insurance Times over the weekend.   I read it twice to make sure that I had read the article correctly.

An article that read IRS Opens Promoter Investigations Office did not seem to have that much of an impact on my reading until I realized that the IRS is pursuing some of the architects of  831 (b) micro captive arrangements.  I have to admit that I have attended a few captive presentations where I had thought – there is no way this could be legal.

The IRS press release was more of a promotion notice for one of their officers – Lois Deitricha 20-year veteran of the agency, will be the new office’s acting director.

According to the press release, Deitrich began her IRS career as a revenue agent in 2001. She holds a master’s degree in Tax from the University of Denver and is a certified public accountant and a certified fraud examiner.

The office, known as the Office of Promoter Investigations (OPI), should come as no surprise as the Internal Revenue Service has taken the following steps to assure that all micro captives under the 831 (b) program complies with the current regs – with J&L article references:

One of the article links pointed to an article where the SIIA (Self-insured Institute of America) article requests the IRS provide the exact rules for the operation of micro captives.

Our company even explored and began setting up an offshore micro captive for Workers Comp,  After reading about how the IRS opens promoter investigations, office, we at J&L (as many insurance advisors) will wait until the IRS issues the final rules on 831 (b) micro captives before venturing further.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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