The personal holding company tax is often thought to be a remnant of days long gone but it can still come back to haunt business owners. This additional tax can be assessed against a closely held company if it receives excess investment income. However, with some careful tax planning, you may be able to avoid any dire tax consequences.
Reviewing the U.S. Tax Court ruling in Avrahami v. Commissioner involving an 831(b) captive insurance company.30 Nov -0001 Written by Super User
The U.S. Tax Court recently ruled in Avrahami v. Commissioner, involving a captive insurance company under Section 831(b) of the Internal Revenue Code (IRC).