Reserve Mechanical Corp. v. Commissioner of Internal Revenue


Reserve Mechanical Corp. f.k.a. Reserve Casualty Corp. v. Commissioner of Internal Revenue (“Reserve”) was decided by the United States Tax Court in an opinion issued by Judge Kathleen Kerrigan (the “Opinion”) on June 18, 2018. Any analysis of the Opinion must be done with reference to the trial record. Because a court’s written opinion sometimes – as we believe is the case here – may not fully reflect the evidence before it, it is important to review the record when performing a proper review of a court decision.


Visit for opinion and trial transcripts.


Capstone offers the following series of commentaries on the tax court’s decision in Reserve:

October 8, 2020 - Reserve Files Reply Brief with Tenth Circuit Court of Appeals

February 28, 2020 - Reserve Files Opening Brief with Tenth Circuit Court of Appeals

May 15th, 2019 - Commentary #5 on Syzygy and the Tax Court’s Continued Application of Erroneous Legal Analysis to Pooling Arrangements 

January 4, 2019 - Commentary #4 on The Tax Court’s Erroneous Application of Avrahami to Reserve

December 19, 2018 - Commentary #3 on Policy Selection 

July 9, 2018 - Commentary #2 on Policy Pricing

June 27, 2018Commentary #1 on Insurable Risks

June 19, 2018Initial Statement


March 3, 2020 - Reserve Files Opening Appeals Brief in Captive Insurance Tax Case

March 2, 2020 - Captive Review: Appeal Filed in Reserve Tax Court Case

March 2, 2020 - Captive Insurance Times: Reserve Files Opening Brief with Tenth Circuit Court of Appeals

March 2, 2020 - Captive International: Reserve Mechanical Files Brief with Court of Appeals Over US Tax Court Captive Ruling

March 2, 2020 - Tax Notes: Court Shouldn't Upend Insurance Norms for Captives, Groups Say

March 2, 2020 - Business Insurance: Captive associations fight 831(b) ruling

February 28, 2020 - Tax Notes - IRS Microcaptive Victory Hinged on Faulty Analysis Company Says

February 24, 2020 - Law360 Tax Authority - Tax Court Confused Over Insurance Industry, Co. Tells 10th Circuit

June 28, 2018 - Captive Review: Reserve Mechanical- Judge Kerrigan Shows "Limited Knowledge" of Reinsurance Market