Helping insurers limit their tax liabilities
Because we understand that every business decision has tax consequences, we have hundreds of tax specialists in our firm. Some of these specialists concentrate specifically on the needs of insurance companies.
These tax specialists are committed to keeping our insurance industry clients current with regulatory, legislative, and other business issues and trends that affect tax frameworks. They can assist clients with compliance issues such as preparing and/or reviewing federal tax form 1120PC and state premium taxes, as well as provide tax minimization, strategy planning ideas, and other consulting services.
Corporate reorganizations, acquisitions, and dispositions
While corporate structure moves in the insurance industry are driven primarily by regulatory and marketing considerations, within that framework we can help you plan tax minimization strategies for future structural changes that also maximize operational efficiency.
State tax issues
Generally states levy taxes on premiums, but after that tax policies for insurance companies vary from state to state. Recently our tax specialists assisted an insurance company doing business across the country with various state income and other tax filing requirements. We were able to identify numerous state tax credits that the client had not previously been taking advantage of.
More and more of our insurance clients are asking us to help determine where they have a taxable presence, or nexus. Businesses in general are getting surprised by bills for unpaid state taxes as many states enhance their discovery efforts in an attempt to close budget deficits.
Our tax advisors that specialize in the insurance industry can help determine if you have possible liabilities and, when appropriate, help you negotiate a “voluntary disclosure agreement” to possibly reduce the money you may owe.
Voluntary disclosure can save you money
They’ll keep you anonymous while they negotiate with state tax authorities. A negotiated agreement generally results in payments significantly less than the unreported tax liability due to limiting the look-back period. A typical look-back period is three to four years; however, if a state discovers the taxpayer first, it may go back to all years the taxpayer was conducting business in the state. In most cases of voluntary disclosure, our tax specialists are able to eliminate non-filing penalties and, in some cases, have also been able to eliminate interest.
Tax minimization maximizes cash flow
To help our clients with tax consulting strategies, our tax specialists stay on top of changes in local, state, and federal tax regulations so that they can continually develop new tax planning strategies or amend old ones.
Recently our tax specialists helped an insurance company leverage historic tax credits to renovate an aged, architectural gem into an impressive headquarters. Currently they are helping a client incorporate energy-saving devices into a new building to take advantage of the Energy Efficient Commercial Building tax deduction that was extended as part of last year’s economic stabilization act.
Tax consultants devoted to your success
Because our tax specialists are devoted to your success, they are continually monitoring legislative, regulatory, and precedent-setting developments in tax in order to offer you leading edge advice from tax minimization and planning to other tax consulting services. You will appreciate our focus on client service. It’s another way Plante Moran keeps its promise to help your organization thrive.