Barrett Business Faces Adverse Tax Court Ruling, Added Expenses

An update from Barrett Business Services ( (BBSI) ) is now available.

On March 30, 2026, the U.S. Tax Court granted the IRS’s motion for partial summary judgment and denied Barrett Business Services, Inc.’s competing motion in a dispute over wage-based tax credits, including the Work Opportunity Tax Credit and Empowerment Zone Employment Credit, for tax years 2017 through 2020. While the ruling did not set specific deficiency, interest, or penalty amounts, Barrett expects to book about $8.6 million in additional tax expense and $3.4 million in related interest in the first quarter of 2026, covering 2017–2022 exposure, is not planning to accrue penalties, is weighing legal options including a possible appeal, and does not anticipate any impact on current operations or client services.

The most recent analyst rating on (BBSI) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Barrett Business Services stock, see the BBSI Stock Forecast page.

Spark’s Take on BBSI Stock

According to Spark, TipRanks’ AI Analyst, BBSI is a Neutral.

The score is supported by solid financial performance (steady growth, profitability, and very low leverage) and a reasonable valuation, but is held back by weak technicals indicating a broader downtrend and a history of volatile cash-flow conversion.

To see Spark’s full report on BBSI stock, click here.

More about Barrett Business Services

Barrett Business Services, Inc. operates in the business services industry, providing outsourced human resources and related administrative services to client companies. Its offerings typically include payroll administration, workers’ compensation coverage, and other employment-related support aimed at improving operational efficiency for its clients.

Average Trading Volume: 255,852

Technical Sentiment Signal: Hold

Current Market Cap: $752.8M

See more insights into BBSI stock on TipRanks’ Stock Analysis page.