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Businesses purchase tax insurance to protect their financial assets against tax risks. According to AON, companies use tax insurance to defend themselves against the possibility that their submitted tax returns are incorrect. If you live in the Fords, NJ area, we invite you to contact us at Five Star Insurance Agency, LLC. Our agents are knowledgeable about tax insurance and other forms of commercial insurance that may benefit your company.
Tax Insurance Explained
If your business pays or estimates its taxes on a position and the U.S. government charges you a higher rate, your tax insurance can help make up the difference between the two amounts. Tax insurance can be obtained for business reorganizations, financial transactions, or investments, such as renewable resource investments.
Tax Insurance Example
Using the example of an investment in a renewable resource, the government may project a high monetary return for its sale. Your company tax expert may feel it will be less profitable. Since there is no guarantee of the amount, the tax expert creating your policy may set it at an amount they predict the U.S. government will settle for if they challenge you. However, if the tax expert believes they have evidence that the investment will bring an almost certain return, they may feel more confident setting the liability low.
Call Us for an Appointment Today
Tax Insurance can seem complex, but our Five Star agents can help you understand it. At Five Star Insurance, we have provided Fords, NJ business services since 1984. Our mission is to provide you with the information and choices you need to fulfill your insurance needs at the lowest possible price. Call Us for an appointment today so we can begin to show you your options.
