Law Firm Announces Program to Restructure 831(b) Captive Insurance Companies

831(b) Captive Insurance CompaniesMay 6, 2016 (Houston, TX) - A law firm recognized as a national leader in tax and corporate matters involving captives today announced a new "Captive Health Check-Up" program to evaluate and restructure captives for compliance with the passage of the year end 2015 restrictions on Section 831(b) captives. The Feldman Law Firm LLP rolled out its new program this month, reports Steven D. Cohen, the head of the Firm's tax department.

"Our Firm has been the leader on almost 200 captive projects over the last 18+ years," explained Cohen. "We routinely structure captive insurance arrangements to maximize planning opportunities. The 'Protecting Americans from Tax Hikes Act of 2015' signed into law in December 2015 makes significant changes to captive insurance planning."

Cohen continued, "Just like any type of corporate planning, a captive program needs to be monitored and tweaked on an ongoing basis for legislative, judicial and business changes. Planning cannot be static. Our lawyers are continually monitoring the captives managed by the Firm's affiliate, Capstone."

"The 2015 PATH Act is an important issue to be promptly addressed. Our Firm is already working with clients to satisfy the new tax requirements and to benefit from the PATH's expanded opportunities," commented Logan R. Gremillion, one of the Firm's tax lawyers.

Cohen further explained, "We have seen instances in which clerical captive managers are unable to provide audit defense for their clients when challenged by the IRS. One of our Firm's services has been to rehabilitate these captives as necessary and defend them in tax audits. Capstone's own successful record in captive management, as well as our Firm's record with IRS audits and tax court challenges, provide us with a solid foundation for defending and rehabilitating incomplete work done by some captive sponsors."

Stewart A. Feldman, the Firm's managing partner explained that the Firm's team of corporate, tax and regulatory lawyers are well positioned to perform captive "health check-ups" in cooperation with its affiliate, Capstone Associated Services, Ltd., one of the largest and oldest captive sponsors in the U.S. "The unique combination of experience of our joint team gives us an unparalleled advantage in evaluating and rehabilitating captive programs. Clients welcome having an independent set of experts' eyes evaluating the planning typically found to have been done by administrative or non-professional personnel. "Clients prefer having problems identified up-front," commented Feldman. "And at some point in a captive's life, an IRS audit will happen. Clients don't want surprises."