This document sets for the terms and conditions of services that may be provided by Williams Coulson to 831(b) Captive Owners that shall be referred to as a Captive Compliance Screening (a “Screening”).

Purpose.  The purpose of a Screening is to have an independent third party legal advisor consider the Captive in a manner similar to an IRS audit to identify the strengths and weaknesses of the various aspects of the Captive transaction and to make recommendations to improve compliance.

What it is not.  A Screening does not ever result in a validation of the qualification of a captive transaction.  Also, it is not an opinion letter expressing approval of a captive transaction nor in any way a guarantee of either a positive or negative view that may be held by the IRS in the event of an audit.

Why Williams Coulson.  Williams Coulson is currently representing taxpayers in captive transactions in IRS Exam, Appeals and Tax Court.  We understand the IRS views and positions at all levels and can review captive transactions in a manner similar to the IRS prior to an audit.  Further, we are independent of all captive managers and do not recommend any captive arrangements.  In other words, we have no inherent bias for or against any captive transaction.  We also have substantial experience representing taxpayers in targeted audits of other IRS perceived abusive transactions.

What you Receive.  A Client receives a Screening Scorecard which rates probable compliance with 8 Silos of Consideration.  The results of each Silo are scored with recommendations for improvement.

Silos of Compliance.

 Interview Questions.

• Background of Business Insured.
• Consideration of Risk Management.
• Due Diligence of Captive.
• Formation of Captive.
• Operation of the Captive.
• Risk Pools.
• Captive Manager Questions.

 

Costs.  The costs for a Screening are based on the hourly rates of Williams Coulson attorneys and will depend upon the amount of information reviewed.  Based on past engagements, we suggest that Clients expect that the legal fee amounts to be a minimum of $10,000.

For More Information.  Please contact Mike Lloyd at (412) 454-0225, mlloyd@williamscoulson.com.