- 46 -
1987 32,602,710
1988 306,593
Total (80,854,872)
OPINION
On a number of prior occasions, this Court has confronted
the issue of the deductibility of purported insurance premiums
paid to a wholly owned captive insurance company. E.g., Sears,
Roebuck & Co. and Affiliated Corps. v. Commissioner, 96 T.C. 61,
modified 96 T.C. 671 (1991), affd. on this issue, revd. in part
and remanded 972 F.2d 858 (7th Cir. 1992); Humana Inc. v.
Commissioner, 88 T.C. 197 (1987), affd. in part and revd. in part
881 F.2d 247 (6th Cir. 1989); Clougherty Packing Co. v.
Commissioner, 84 T.C. 948 (1985), affd. 811 F.2d 1297 (9th Cir.
1987); Carnation Co. v. Commissioner, 71 T.C. 400 (1978), affd.
640 F.2d 1010 (9th Cir. 1981); see also Malone & Hyde, Inc. v.
Commissioner, T.C. Memo. 1992-661, revd. and remanded 62 F.3d 835
(6th Cir. 1995). Our position has been to consider all of the
facts and circumstances when faced with the task of determining
whether a transaction nominally labeled "insurance" should be
recharacterized as "self-insurance" or as some other arrangement
that negates transfer of risk. Sears, Roebuck & Co. v.
Commissioner, 96 T.C. at 96; see also Amerco, Inc. v.
Commissioner, 979 F.2d 162, 165 (9th Cir. 1992) ("many
considerations can come into play when one attempts to decide
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