Tax attorney Brandon Bloom spoke with Law360 about concerns that the Inflation Reduction Act's funding boost to the Internal Revenue Service (IRS) could lead to more audits and may spur new interest in tax insurance. Tax insurance is an increasingly popular product for mitigating the risk of challenges by taxing authorities. This article explores the evolution of tax insurance, the impact of the Inflation Reduction Act on interest in the product and advice for those looking to get insured.
Mr. Bloom explained that tax insurance can make closing deals smoother by providing security in the absence of a private letter ruling from the IRS, which can often take extended periods of time. "You always have the risk that the IRS won't agree with your position, or that the facts aren't what you thought they were," he noted.
READ: Inflation Reduction Act Could Boost Tax Insurance Popularity (Subscription required)
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