Tax Shelters: A Guide to Listed Transactions
Self-explanatory, a list of "Listed Transactions". Note: Captive insurance is NOT a reportable/listed transaction.
Listed Transactions.pdf
Adobe Acrobat document [26.4 KB]

AMERCO and Subsidiaries, and Republic Western Insurance Company v. Commissioner
The primary issue is proper characterization, for Federal income tax purposes. Specifically, whether any, some, or all of the transactions constituted “insurance,” in the tax lexicon.
15 (Amerco 012491).rtf
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Beech Aircraft Corporation v. Commissioner
Amounts paid to wholly-owned subsidiary for products liability insurance did not qualify as deductible insurance premiums. The court found that in reality there was no shifting of risk.
16 (Beech Sircraft 080686 - court of app[...]
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Carnation Company v. Commissioner
The Tax Court’s holding that a domestic corporation could not deduct its insurance premium payments where the risk was passed to a Bermuda subsidiary under a reinsurance agreement was sustained.
17 (Carnation 030681).rtf
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Clougherty Packing Company v. Commissioner
A corporation could not deduct premiums paid an unrelated corporation to the extent the latter company reinsured the claims with a third corporation that was a wholly owned subsidiary of the Company.
18 (Clougherty Packing 030387 - court of[...]
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Clougherty Packing Company v. Commissioner (Ct. of Appeals)
Held, petitioner failed to shift 92 percent of its risk of loss; therefore, 92 percent of its premiums paid to Fremont is not deductible as an ordinary and necessary business expense for insurance.
18 (Clougherty Packing 030387 - court of[...]
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Crawford Fitting Company v. Commissioner
Premiums paid to captive were deductible because taxpayer and captive's shareholders were not so economically related that their financial transactions had to be aggregated as a single taxpayer.
20 (Crawford Fitting 011685).rtf
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The Harper Group v. Commissioner
Captive provided liability insurance to subsidiaries and insurance coverage to customers totaling 29%, 32%, and 33% of premium revenue. Held, affiliated entitled to deductions for insurance premiums.
21 (Harper group 012491).rtf
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Humana, Inc. v. Commissioner (Coiurt of Appeals)
As subsidiaries were separate entities from the corporation, risk was shifted. Due to the number of the subsidiaries, risk distribution test for determining whether insurance exists was met.
22 (Humana 070789 - court of appeals).rt[...]
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Mobile Oil Corporation v. Commissioner
Substance v. Form: Payments to a subsidiary for insurance not qualify as deductible premiums, there was no transfer of risk of loss--in accordance with economic reality--no insurance was purchased.
23 (Mobil oil 080185).rtf
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Sears, Roebuck and Co. and Affiliated Corporations v. Commissioner
Parent-subsidiary relationship: Deductibility by payor: Inclusion in insurance company’s income: Mortgage guaranty insurance: Default by borrower: Timing of loss deduction.
24 (Sears Roebuck 012491).rtf
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Sears, Roebuck and Co. and Affiliated Corporations v. Commissioner (Court of Appeals)
A noncaptive member of a consolidated group that underwrote risks of its corporate parent could create and deduct reserves. The IRS’s “economic family” argument was rejected.
25 (Sears Roebuck 081892 - court of appe[...]
Text document [47.4 KB]

Stearns-Rogers Corporation v. United States (Court of Appeals)
Premium payments made by a parent corporation to its wholly-owned subsidiary were not deductible as an ordinary and necessary business expense because the parent corporation failed to shift the risk.
26 (Stearns Roger 093085 - court of appe[...]
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Stearns-Rogers Corporation v. United States (US District Court)
Premiums paid to a bona fide captive insurance company were nondeductible because profits and losses stayed within the “economic family” and did not shift or distribute risk.
27 (Stearns Roger 110883 us dist court).[...]
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Stearn-Robers Corporation v. United States
Amended memorandum opinion: Interlocutory decisions: Controlling issue of law involved: Immediate appeal: Certification of ruling.
28 (Stearns Roger 01131984).rtf
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United Parcel Service, Inc. v. Commissioner
Shipping corporation not required to include in gross income charges paid by customers for carrier’s agreement to compensate in excess of standard rate for lost or damaged packages.
29 (UPS- court of appeals).rtf
Text document [28.5 KB]