TaxPLUS Designed for The CHAMP Plan™
Total Balance Sheet Protection for Enterprise Benefits.
TaxPLUS for Enterprise is commercial tax liability insurance designed for The CHAMP Plan™ — insulating large enterprises from federal tax losses driven by plan federal tax reclassification, up to the policy limit, in writing, before any assessment. Discover how 500+ employee corporations leverage institutional risk markets to protect their balance sheets.
An Insurance Instrument, Not a Tax Opinion.
Boards do not want a stronger argument. They want a number.
A tax opinion tells your directors what counsel believes a position should survive. It does not pay an assessment. TaxPLUS for Enterprise transfers the financial consequence of an identified federal tax position from your balance sheet to a carrier's — underwritten on the merits inside the risk market, and payable in dollars if the position is later disallowed. Your coverage is defined in advance, rather than litigated after the fact.
Fiduciary Defensibility
Directors who adopt a benefit program carrying a federal tax position own that position. TaxPLUS for Enterprise converts an open-ended contingency into a quantified, contracted exposure — documented, disclosable, and reviewable by your audit committee.
Audit and Disclosure Posture
An insured position is a documented position. The underwriting file, the TaxPLUS policy, and the coverage limit give your external auditors and your tax function a defined framework for evaluating and reserving against reclassification risk, instead of an unbounded judgment call.
No Disruption to Existing Coverage
TaxPLUS sits alongside the underlying benefit program. It does not alter your medical plan, your carrier relationships, your payroll vendor, or your existing insurance placements.
Certainty You Can Put a Number On.
Where the Exposure Actually Sits
Reclassification
A Section 125 benefit treated as pre-tax is later characterized differently on examination. A post-tax employee benefit is later characterized as taxable.
Assessment
The consequence is not one number. It is back taxes across open years, on a workforce-wide base.
Scale
At 500+ employees, a per-employee assessment becomes a balance-sheet event. Scale is exactly why the institutional risk market will write it.
What Is Covered
What TaxPLUS Covers
Component 1 — Employer FICA/FUTA
Assessed employer FICA and FUTA taxes where pre-tax MEC contributions are later reclassified.
Component 2 — Employee FIP
Assessed employee income taxes on the Fixed Indemnity Payment where the Health Risk Assessment prescribed -triggered §213(d) benefit is later recharacterized.
Purpose-Built and Deliberately Narrow.
TaxPLUS for Enterprise
We review inquiries from corporations with 500 or more employees. Below that threshold, the enterprise structure does not fit. Organizations under 500 employees are placed on our Mid-Market Waitlist for a forthcoming facility.
Check EligibilityFor Corporate Counsel and Financial Officers
How TaxPLUS Works
Three steps. A standardized tax baseline, an independent underwriting review, and a contracted indemnity. Each is separable, and each is documented.
The Standardized Compliance Foundation
A Documented Plan, Not a Bespoke Position.
The underlying strategy is The CHAMP Plan™ — an employer-sponsored, employee-funded program that sits alongside existing health coverage. It has operated in market for more than eight years. Because the documents do not change from employer to employer, the tax position does not change from employer to employer. That is the precondition for insurability under TaxPLUS.
Independent Underwriting Review
Carriers Underwrite It. Not the Sponsor.
Your submission is reviewed by underwriting inside the risk market — underwriters who evaluate the position on its merits. They are paid to find the failure mode. Their capital answers for the conclusion. The review is independent of the benefit program and independent of any party that implemented it.
Federal Tax Loss Indemnification
If the Position Is Disallowed, the Carrier Pays the Tax.
The TaxPLUS policy responds to an assessed federal tax loss arising from reclassification of the covered plan position — dollar-for-dollar, up to the annual aggregate limit you select.
Bring This to Your Risk Manager.
Executive Briefing
The executive briefing runs one page. Your Qualified Risk Manager will know within a paragraph whether TaxPLUS belongs on your next audit committee agenda.
CHAMP + TaxPLUS for Enterprise Presentation
A comprehensive overview of The CHAMP Plan™ and the TaxPLUS for Enterprise structure for distribution to your legal, tax, and risk functions.
Contact Us
Drop us a line.
Sign up for updates. You can also reach us directly at admin@taxwarranty.com.