Advisers should not take a “wait and see” approach to the Internal Revenue Service’s (IRS) Notice 2016-66.
Advisers should begin collecting information and preparing forms in earnest, given the significant penalties.
The IRS’s Notice 2016-66, released on 1 November, formally labeled micro captive transactions as “transactions of interest”.
The notice requires reporting by any taxpayer involved in micro captive transactions over a number of past years in which the open statutes of limitations applies. The filing deadline for this is 30
January 2017, 90 days from the date of issuance.
The 30 January 2017 due date is coming soon!
