Couple Appeals Tax Court Ruling Against Microcaptive Premiums

The founder of a chain of San Antonio medical facilities will continue fighting for disallowed tax deductions tied to microcaptive insurance premiums that a US Tax Court judge said amounted to “nonsense.”

Bernard and Kathy Swift notified the Tax Court Wednesday that they will appeal a ruling from earlier this year against the microcaptive insurance companies they founded. The IRS determined some of them charged premiums much greater than the highest commercial rates.

• The IRS determined the couple understated their tax liability by $2.45 million and blocked them from deducting $1 million in premiums and legal fees on their income ...