Steven Quance, Drake Plastic’s president, established Drake Insurance in North Carolina to address coverage gaps his business faced. Despite nine IRS audits of Drake-related entities and Quance’s family – all concluding without finding irregularities – the agency disallowed the company’s 2020 captive insurance premium deduction, claiming the arrangement lacked “economic substance.”
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.