Tax Insurance Market Heats Up for M&A and Energy Credit Deals

Demand for tax liability insurance is soaring as dealmakers look to limit their harm that the IRS could do if it rules against their positions.

The growing demand for the insurance stems from companies and their lawyers increasingly seeking it as a tool to get deals done at a time when it’s unclear how the IRS will treat certain energy tax credit and merger and acquisition transactions.

“You can eliminate a lot of the things that typically hold up deals by just getting the insurance policy,” said Brianne de Sellier, partner in Crowe’s Washington national tax office. She added ...