Helps provide financial protection against challenge by a tax authority of a tax position.
AIG can help provide financial protection against loss arising from the successful challenge by a tax authority of tax exposures identified during a purchase or sale or help structure risk transfer options for taxpayers managing their internal tax risk.
Tax liability insurance can reimburse an insured for taxes, interest, insurable penalties, and the costs of contesting or defending one or more covered tax positions.
AIG can underwrite certain tax exposures in the U.S., Canada, Mexico, and other countries in Central and South America on a case-by-case basis.
AIG can provide policy limits of up to $50,000,000 and policy terms of 6 or 7 years.
An insured can also request that the policy include coverage to be “grossed-up” for the income taxes arising from insurance proceeds received under the policy.
Tax-free reorganizations and spin-offs
Net operating losses
Tax credits (such as investment, production, historic, low income housing)
Status issues (S-corps, RICs, REITs, PTPs)
Debt versus equity issues
Issues related to real estate and international tax