Opinion
24344-17 11352-18 25268-18
11-18-2021
Sunil S. Patel & Laurie McAnally Patel, Petitioners 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 I.R.C. sec. 831(b). On October 26, 2021, respondent filed a Motion to Compel the Taking of Deposition of Nonparty Witness Christopher Fay under Tax Court Rule 74(c). The Court ordered petitioners to file a response to the motion and they did so.
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. As the Court has previously stated, the record establishes that Mr. Fay's deposition is warranted.
Accordingly, it is
ORDERED that respondent's Motion to Compel the Taking of Deposition of Nonparty Witness Christopher Fay, filed October 26, 2021, is granted and the deposition of Mr. Fay shall be taken before an officer authorized to administer oaths by laws of the United States, in accordance with the Rules of this Court. It is further
ORDERED that, on or before December 1, 2021, the parties shall schedule the depositions of Christopher Fay, as the parties may agree or, as respondent may designate in the event they are unable to agree. It is further 1
ORDERED that the aforementioned depositions shall be taken on or before January 31, 2022, as the parties may agree or, as respondent may designate in the event they are unable to agree. 2