Held Captive by Crooked INSURANCE? Insurance Companies and Tax Havens in Puerto Rico!

This video demonstrates that unscrupulous promoters lure US persons into putting their assets in offshore accounts and structures sold as being out of reach of the IRS. One such tax shelter is the captive insurance company, typically based offshore, where a tax-dodging business owner gets an inflated policy at an unethical captive insurance company and takes a huge deduction for that insurance expense. The insurance company then segregates the premiums earned from each client and attributes them solely to the business owner's policy, allowing premiums to build up in the business owner's account for years. The premiums are then kicked-back to the business owner as stock options or other kickbacks. A supplemental industry-based risk policy with high self-insurance retention amounts is added to evade the requirement for risk distribution. Puerto Rico segregated asset companies also suffer similar effects of this abusive captive Insurance scheme.

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This is a Clip from the Vlog "r/IRS Questions," which hopes to provide a steady path of information for the /r/IRS Reddit community and anyone interested in tax compliance. This channel also features the latest Internal Revenue Service news, IRS commentary, and tips from tax expert John R. Dundon.
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