CIC Services’ Request For Attorneys’ Fees Disapproved by Judge

A micro-captive insurance adviser shouldn’t be awarded attorneys’ fees in its case against the IRS because the agency’s losing position was substantially justified, according to a magistrate judge’s report and recommendation.

CIC Services LLC asked for the fees in the long-running case that has included a US Supreme Court decision that greenlighted the firm’s suit and a ruling from the district court that the firm didn’t have to comply with an Internal Revenue Service reporting requirement.

In siding with the IRS over the fees, Magistrate Judge Jill E. McCook noted the agency hadn’t defied any binding court precedent when it ...