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Artists Fight $2.78 Million Tax Bill Over Trust, Insurance Plan

Artists Sterling Ruby and Melanie Schiff Ruby are challenging a $2.78 million tax bill from the IRS involving trusts and captive insurance related to their studio business.

The couple was assessed underpayments and penalties for the tax years 2015, 2016 and 2017 and notified earlier this year by the IRS’ small business and self-employed office, according to a petition filed Monday at US Tax Court. The dispute involves both a benefits trust and a captive insurance deduction claimed on the years, with the IRS having disallowed some deductions and inclusions in income and also involves Sterling’s creative entity, Vernon, California-based …


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