CIC says IRS behaving like a “domestic terrorist”

CIC Services have said the Internal Revenue Service (IRS) is behaving like a “domestic terrorist” in a post about the recent decision against the IRS in court.

Sean King, founding principal of the captive manager CIC Services, has urged micro captives to stand up against the “tyranny” of enforcement by the IRS.

In an update on their website, King said: “Recent court cases suggest many judges aren’t agreeable with having a tax collecting and regulating body behave like a domestic financial terrorist against the people. Perhaps the principles in our US constitution aren’t dead yet.”

Marking a significant victory in their long-running dispute with the IRS, a judge recently vacated IRS Notice 2016-66, calling it “arbitrary and capricious”.

The notice, which has led to CIC’s years-long entanglement with the IRS, compels owners of certain 831(b) captive arrangements (micro captives) to report on details of their tax structure to the IRS, and has been fought by CIC Services since they filed a lawsuit in 2016 — a short time after the notice’s inception — regarding the notice’s implementation.

The recent courtroom failure of the IRS to enforce their notice has put the wind in the sails of beleaguered CIC. Clear-eyed in their belief that the IRS is acting in an illegal fashion, King requests support from others in the industry who may also be subject to the notice he deems unreasonable and overtly authoritarian.

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