Captive Insurance: 831(b), 831(a) and Tax Court Updates (Video) (Course Id 2743)

• Who is this course for?
  This course is designed for CPAs, accountants, and advisors seeking Continuing Professional Education (CPE), particularly those interested in tax and risk management strategies involving captive insurance.

• What is this course about or what problem does this course solve?
  The course provides a clear and practical introduction to captive insurance structures, helping professionals understand how these entities are formed, governed, and taxed under Sections 831(b) and 831(a), as well as the associated compliance and regulatory issues.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to confidently advise clients on captive insurance strategies, assess their suitability for specific risk and financial profiles, and navigate relevant tax and compliance requirements.

• Why is this course important to a CPA or Accountant?
  This course is important because it equips professionals with the technical and practical understanding needed to incorporate captive insurance into their advisory services, adding value in complex tax and financial planning scenarios.

• When is this course relevant or timely?
  The course is especially timely for professionals preparing for 2025 tax planning and compliance, as it includes up-to-date content on recent Tax Court developments and regulatory changes.

• How is a course like this consumed or used?
  The course is delivered as a self-study video, allowing participants to learn at their own pace and earn 2.0 CPE credits by passing a final exam with a score of 70% or higher.

Captive insurance has become one of the most talked-about strategies in risk management and tax planning, but many CPAs and advisors are still unsure how these structures work in practice. Is a captive just for large corporations, or can small and mid-sized businesses benefit too? This CE course tackles those questions head-on, giving you a clear introduction to the purpose and mechanics of captive insurance companies.

We’ll explore the building blocks of captives, including how they are formed, governed, and funded. You’ll examine key tax issues under Sections 831(b) and 831(a), while also considering the accounting and compliance rules that apply when captives are part of a client’s financial structure. Along the way, you’ll gain insight into the practicalities of advising clients on whether a captive is the right fit for their risk and financial profile.

Major Topics:

• Captive Structure Fundamentals
• Tax Court Developments
• Risk Transfer Principles
• Premiums and Reserves
• Compliance and Regulation

From risk transfer principles to Tax Court developments, this session provides a balanced blend of technical depth and practical application. By the end, you’ll be equipped with a strong foundation to discuss captive strategies confidently, spot opportunities for your clients, and navigate compliance requirements effectively. If you’re ready to expand your advisory toolkit and add value in a complex but rewarding area, this course is for you.

Video - NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2743

Course Learning Objectives

• Identify common captive insurance structures and explain their core characteristics.
• Explain tax and accounting treatment of premiums, reserves, and transactions.
• Analyze when captive insurance arrangements fit client-specific risk and profiles.
• Discuss compliance and regulatory requirements for forming captives in practice.
• Explore practical strategies for integrating captives into advisory services.

Chapter 1 - Captive Insurance Companies: 831(b), 831(a), and Tax Court Developments

Chapter 1 Review Questions

Glossary of Key Terms