Tax Liability Insurance in Naples, FL
Understanding and applying tax laws can be difficult, especially when engaging in complex business transactions. Companies sometimes make good-faith determinations regarding their tax liabilities when navigating these decisions. This could potentially leave the involved parties vulnerable to challenges from taxing authorities like the IRS, who question that determination.
These uncertainties may result in significant financial burdens, creating obstacles in future business dealings. Tax liability insurance may help cover these known tax exposures and may assist in protecting assets and business values. Tax liability insurance can be a complicated topic, but the team at C.J. Noel Insurance is ready to help find the best policy for your needs.
Tax Liability Insurance Basics
Tax liability insurance may protect businesses and policyholders from the financial burdens resulting from the failure of a known but uncertain tax position. Additionally, it can help cover losses if the IRS or another taxing authority determines more taxes are owed than what was previously claimed. This insurance may help ease uncertainty surrounding potential tax liabilities from M&A transactions, investments, reorganizations or other business activities.
Tax Liability Insurance Coverage and Benefits
Tax liability insurance may provide various protections against financial losses. It may help cover:
Costs to defend or contest a tax position
The amount of additional tax owed as determined by the applicable taxing authority
Interest, penalties and fines
In addition to the coverage against financial loss, tax liability insurance may provide other benefits such as:
Protecting the value of an asset or a business
Quantifying a potential tax liability into an insurance cost
Freeing up capital that was set aside for tax indemnities
The above lists are not all-inclusive. Specific coverages and benefits of each policy will vary. Speak with your agent to ensure you have the right policy in place for your unique situation.
Securing Tax Liability Insurance
To determine the insurability, underwriters will generally need to know several details. Some of the information they may request include specific information about the position being covered, the tax backgrounds of the involved parties, the limit of liability requested, and the potential losses that might result from the tax position. Underwriters may also request a tax advisor’s draft opinion on the circumstances if one is available. This information could also factor into the cost of the insurance, which varies depending on the situation.
Contact Us Today
While tax liability insurance may be a complex topic, the agents at C.J. Noel Insurance have the knowledge and expertise to help you find the best policy for your specific needs and budget. Call them today at 239-403-8391 or visit their website at www.cjnoelins.com for more information.