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Judge Rules Microcaptive Pre-Trial Penalty Assessment Lawful

Original: Microcaptive Pre-Trial Penalty Assessment Is Lawful, Judge Finds

A federal judge has found that the IRS's pre-trial assessment of penalties in a microcaptive insurance case is lawful, according to Bloomberg Law. The ruling is a setback for microcaptive owners challenging the tax agency's authority to impose penalties before trial. The decision may shape how similar disputes between taxpayers and the IRS proceed, in an area already under close scrutiny by regulators.

Why now: Microcaptive tax cases are a live and consequential dispute between small business owners and the IRS, so court rulings draw attention.

IRSBloomberg Lawmicrocaptive insurance companies

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