Skip to Main Content

Charles Ruchelman Comments on Recent IRS Settlement Offer for Microcaptive Insurers in Tax Notes

September 17, 2019, Tax Notes

The IRS revealed a time-limited settlement offer for some taxpayers currently under audit that participated in microcaptive insurance transactions, but the announcement provided scant details on eligibility and terms.

. . .

Charles Ruchelman of Caplin & Drysdale pointed out that the IRS didn’t opt for a global offer for all taxpayers but rather limited the availability to select taxpayers. Yet he said he remains concerned that the IRS opted for a one-size-fits-all approach for different captive insurance arrangements.

According to Ruchelman, the IRS’s process for developing the program is concerning. He said it’s troubling that the IRS didn’t solicit input from taxpayers or their representatives in determining the settlement terms.

Appeals weighed in on the settlement initiative, saying in the release that the terms “generally reflect the hazards of litigation faced by taxpayers, and taxpayers should not expect to receive better terms in Appeals than those offered under this initiative.” 

But Ruchelman said practitioners are curious how Appeals reached its conclusion on litigation hazards “this early in the ball game, when these cases are mostly at the examination stage.”

For the full article, please visit Tax Notes’ website (subscription required).


About Caplin & Drysdale
Celebrating our 55th Anniversary in 2019, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
New York, NY Office:
295 Madison Avenue
12th Floor
New York, NY 10017


This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
©2021 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)