The Avrahamis' motion for reconsideration was denied by Federal Judge Mark Holmes in November. The court concluded that at least one of the policies was so "ill-drafted" that it was both an occurrence policy and a claims-made policy. The Avrahamis argued, in the motion, that there should be no reasonable dispute that the policies were claims-made and not occurrence policies.
A decision in the Avrahami case was released in August by the US Tax Court. The judge ruled in favor of the Internal Revenue Service (IRS). It was the first case that involved this type of micro captive strategy. Under Section 831(b) the captive made the election to be taxed solely on investment income.