Davis H. Smith


Davis H. SmithShareholder

Davis regularly advises captive insurance companies, risk retention groups and self-insured funds on transactional, regulatory and tax matters. He counsels clients on tax and business strategies in a variety of industries, with a particular focus on participants in regulated industries, including insurance companies and investment advisors, and the professional services industry, including accounting firms. Davis was a co-author of the 2016 update to the Alabama Captive Insurers Act. Davis is a frequent speaker and writer on tax planning for businesses, including strategies for captive insurance companies.

Experience >

Davis has extensive experience in advising businesses on structuring and growing their businesses in a tax efficient manner.  In particular, some of the services Davis has provided include the following:

  • Structuring captive insurance companies, including risk retention groups, to provide a variety of coverages including enterprise risk, medical stop loss, service contract/warranties, professional liability, risk pools, and other unique coverages;
  • Issuing tax advice and opinions to support the compliance of captive structures with applicable law
  • Representing a regional accounting firm in more than 80 acquisitions
  • Represented developers in structuring the syndication of historic tax credits, including providing tax opinion
  • Representing insurance advisors, including managing general agents and captive managers, in their growth strategies, including acquisitions and expanding into new markets
  • Advising insurance companies, including admitted carriers and self-insured funds, on compliance with state laws
  • Structuring the redomestication of captives and risk retention groups from domestic and foreign domiciles

Memberships and Affiliations >

  • Captive Insurance Companies Association
  • Alabama Captive Association, Board of Directors
  • Alabama State Bar, Section of Taxation, Chairman 2016-2017
  • American Bar Association, Section of Taxation
  • Montgomery County Bar Association

Education >

  • B.A., Hampden-Sydney College, 1997
  • J.D., University of Alabama, 2000
  • LL.M. in Taxation, New York University, 2001

Accolades >

  • Best Lawyers in America©, Tax Law, 2017
  • Finalist for Law Firm of Year for 2017, Captive Review
  • John A. Campbell Moot Court Board, 1999-2000
  • Mugel National Tax Moot Court Team, 1999-2000

Presentations and Publications >

  • "IRS v Captives," Alabama Captive Association 2017 Annual Conference
  • "Federal and State Taxation of Captive Insurance Companies," 2017 Annual Tax Section Meeting of the Alabama State Bar
  • "The Basics of Captives and Risk Retention Groups," 2016 American Conference Institute's 4th Annual Advanced Forum on Captive Insurance, New York
  • "Self-Procurement Taxes and Other Recent Developments," Alabama Captive Association 2016 Annual Conference
  • "Captives: The Money is Yours, Why Give it Away?," 2016 AlaHA Annual Meeting
  • "Sales and Use Tax in Alabama," Lorman Education Services, 2013
  • "Captive Insurance Companies: An Overview," Montgomery Estate Planning Council, 2012
  • "Section 108 and Cancellation of Debt Income: Navigating IRS Rules" Strafford Publications, Inc., 2011
  • "Disregarded Entities: Tax Issues Not To Be Disregarded," 2009 IRS Nationwide Tax Forum
  • "LLC Trends and Developments - 2007," National Business Institute, 2007
  • "S Corporations: The Ins and Outs of Tax Reporting and Planning," American Institute of Certified Public Accountants, 2006

Recent Articles >

  • "Captive Insurance Company Planning After Avrahami," Connections, ASCPA, November-December 2017
  • "Avrahami: The Importance of Business Purpose and Formal Operations," Captive Insurance Company Reports, Novembe 2017
  • "Captive Strategies for Healthcare Organizations," How to Start a Captive Report 2017, Captive Review.
  • "Self-Procurement Taxes and the Equal Protection Clause," State Tax Notes, January 23, 2017
  • "Has the Limit on Challenges to Debt–Financed Distributions Been Extended?" Real Estate Taxation, Vol. 38/Issue 4, 2011
  • "Tax Considerations in Exiting a Professional Practice," Vol. 15, Managing Partner Advocate, LexisNexis, 2008
  • "Formation and Operation of LLCs," LLC Trends and Developments - 2007, National Business Institute, 2007
  • "Understanding Complex Tax Issues," LLC Trends and Developments - 2007, National Business Institute, 2007

Related Practices

Bar Admissions

  • Supreme Court of Alabama
  • United States District Court, Middle District of Alabama
  • United States Tax Court

Licensed In

  • Alabama