Alta Co-founder Fined Over Micro-Captive Scheme

Bruce Molnar, co‑founder of Alta Holdings, has been fined by the IRS for promoting abusive micro‑captive insurance arrangements. The IRS ruled that his captive insurance contracts did not qualify as legitimate insurance under tax law, triggering penalties. The settlement follows the IRS designating certain 831(b) micro‑captive transactions as reportable or listed under updated regulations. This move reflects intensified IRS scrutiny aimed at curbing aggressive use of micro‑captives for tax avoidance. The case underscores growing regulatory enforcement against flawed micro‑captive schemes.

Source: Captive Insurance Times

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