Butler Snow attorney Benjamin Arthur Whitehouse was recently quoted in Captive Insurance Times. He shared his thoughts on the US Supreme Court’s decision to hear CIC Services’ case against the Internal Revenue Services (IRS) regarding IRS Notice 2016-66.
Also commenting on the decision, Benjamin Whitehouse, attorney at Butler Snow, said: “Many in the captive insurance industry will welcome this opportunity to have the Supreme Court scrutinise the current approach by the IRS to indiscriminately use its most coercive enforcement weapons against all micro-captives, regardless of their underlying merits.”
“The case itself hinges on the application of the Anti-Injunction Act, which prohibits injunctions against the IRS by taxpayers for attempting to collect taxes. CIC Services argues that they aren’t trying to stop the IRS from any collection efforts, instead objecting to what they see as overreaching and expensive compliance mandates that were imposed without any formal rulemaking.”
He argued: “This case has also drawn a lot of interest from those outside the captive industry who are gravely concerned about the expanding power of the federal bureaucracy to unilaterally make policy decisions that have severe consequences for small businesses without notice or the ability of any member of the public to provide any sort of meaningful comment.”
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