Micro-Captive Arrangements

 

Several recent U.S. Tax Court decisions have confirmed that certain micro-captive arrangements are not eligible for claimed federal tax benefits. If you have taken a deduction or other tax benefit on a prior year tax return related to micro-captive insurance, you can amend your return to remove these benefits.

For an individual amended return:

  • Write "Microcaptive" at the top of the first page of Form 1040-X and mail the amended return to Internal Revenue Service, 2970 Market Street, Philadelphia, PA 19104.

For a business paper amended return:

  • Write "Microcaptive" at the top of the first page of the amended return and mail the amended return to the address listed in the instructions for the return. 

For a business electronic amended return:

  • Notate "Microcaptive" as the reason for filing the amended return.

If you have received IRS Letter 6336 and have questions, you may call 737-800-7995 for assistance. This is not a toll-free number.