Capstone’s Feldman Addresses National CPA Tax Conference

aicpa conferenceJune 20, 2016 (Houston, TX) -  Stewart A. Feldman, CEO and General Counsel for Capstone, was a featured speaker at the American Institute of CPAs' Conference on Tax Strategies for the High Income Individual, held May 23-24, 2016 in Las Vegas, NV. More than 500 CPAs were in attendance from across the U.S.

Mr. Feldman's presentation addressed the pitfalls and complexities in implementing captive insurance/alternative risk planning and his experience with more than 55 captive audit and tax controversies over the last two decades.

Attendees were engaged in both public practice and in industry.

Feldman's presentation also focused on land mines in captive planning that are typically brushed aside and ignored by most "captive managers."

"Because most so-called 'captive managers' disclaim tax, legal, and other professional services, they typically ignore the difficult and serious aspects of the planning, leaving their clients dangerously exposed. When it comes to a tax audit, most captive managers are nowhere to be found, leaving their clients in a precarious situation,” explained Feldman. “Most ‘captive managers’ outright disclaim taking any tax responsibility for the planning, essentially leaving the clients with a clerical, financial product. Unfortunately most clients don’t carefully read their engagement letters, and are lulled into the assumption that the work is being carried out. Clerical and administrative 'captive managers' leave their clients in a lurch by brushing over or ignoring many of the tax issues."

Included in Feldman’s presentation was a discussion on the particular dangers of cell captive structures or segregated business units, and the practical dangers of not having a single professional responsible for the captive program overall.

Capstone's participation received positive feedback from conference participants, many of whom were unaware of the complexities of captive insurance planning. "After forming CAPTIVE_FORMATIONS captives over CAP_YEARS_NUMBER years, and after successfully completing more than TAX_CONTROVERSIES tax controversies, we at Capstone have a healthy respect for the sophistication of captive/alternative risk planning. There are many moving parts to operating a bona fide insurance company. Unfortunately, many believe the planning consists of simply filling out a few forms.”

Editor’s Notes: As of CURRENT_YEAR, Capstone has been operating for CAP_YEARS_NUMBER years and has formed over CAPTIVE_FORMATIONS captives. In addition, The Feldman Law Firm LLP has been operating for LAW_YEARS_NUMBER years and has successfully resolved over TAX_CONTROVERSIES tax controversies. The cap on captive insurance premiums is CURRENT_PREMIUM_CAP million, which carries a 0% Federal income tax rate under Section 831(b) of the Internal Revenue Code.