CPA Trendlines Podcasts Vardan Pogosian: The 831(b) Wake-Up Call: What Advisors Are Missing in Risk Management | The Concierge CPA
A former IRS agent breaks down the red flags, revenue thresholds, and compliance work that advisors can’t ignore.
The Concierge CPA
With Jackie Meyer
For CPA Trendlines
The Concierge CPA hosts a deep dive into captive insurance planning this week, as host Dr. Jackie Meyer, CPA, and guest Vardan Pogosian, CPA, unpack both the risk-management foundations and tax-planning implications of small captive insurance companies. The episode clarifies a strategy that many tax professionals find complex or intimidating, with actionable guidance on identifying suitable clients and avoiding compliance risks.
Captive insurance — typically formed under Internal Revenue Code Section 831(b) — allows businesses to establish their own insurance company to cover risks that may be difficult or costly to insure through commercial carriers. Under the provision, small qualifying captives can elect alternative tax treatment, in which premiums paid into the captive are tax-deductible to the operating business but not immediately recognized as income by the captive. Tax is generally deferred until the captive is dissolved, at which point capital gains tax applies.