UNDATED, WI (WTAQ) - The IRS is still prohibited from filing claims against a special account created to protect policy-holders of a struggling Wisconsin insurance company. The federal government appealed previous court orders against IRS actions that involved customers of the Ambac Assurance Corporation. And the State Supreme Court ruled Thursday that federal officials cannot challenge those court orders. Ambac provides insurance coverage for mortgage securities and other risky transactions – and state officials feared the company might collapse during the Great Recession. So the state moved some of the firm’s most damaging liabilities into a special account two years ago. The IRS wanted to pursue claims against the account, but a Dane County judge rejected that effort and said the affected policy-holders should be protected. The U.S. Justice Department appealed – but the State Supreme Court said the appeal was not valid, because Justice attorneys had not raised any issues in the circuit court.
Coast to Coast AM 12:00 AM - 6:00 AM