Opinion
24344-17 11352-18 25268-18
10-29-2021
Sunil S. Patel & Laurie McAnally Patel, ET AL., Petitioner v. Commissioner of Internal Revenue, Respondent
ORDER
Courtney D. Jones Judge
These cases concern whether certain entities formed by petitioners, Magellan Insurance Company Ltd. (Magellan) and Plymouth Insurance Company, Inc. (Plymouth), were micro-captive insurance companies and engaged in insurance transactions for Federal income tax purposes. See sec. 831(b).
On October 26, 2021, respondent filed a Motion to Compel the Taking of Deposition of Nonparty Witness Christopher Fay under Rule 74(c). The Court has previously observed that petitioners do not dispute that Mr. Fay served as a wealth management advisor to petitioners and, in that capacity, played a significant role in setting up the micro-captive arrangement. Accordingly, as the Court has previously stated, the record establishes that Mr. Fay's deposition is warranted.
As stated previously, the Court is in agreement with respondent regarding the discoverability of the underlying subject matter at issue. The Court also notes petitioners' refusal to permit informal interviews of Mr. Fay, as well as their prior resistance to discovery that the Court ultimately found proper. Notwithstanding the aforementioned points, we will permit petitioners an opportunity to formally respond to the present motion prior to ruling on it.
Upon due consideration and for cause, it is 1
ORDERED that petitioner, on or before November 15, 2021, shall file a response to respondent's Motion to Compel the Taking of Deposition of Nonparty Witness Christopher Fay. 2