Tax issues arising in an insurance-company conservation or liquidation proceeding can be as complex as regulatory and legal ones—potentially blindsiding stakeholders at a time when they're not focusing on the Internal Revenue Service.

Regulators and creditors, as well as managers and owners of the troubled companies—and of healthy ones included on consolidated tax returns—should be aware of some of the common tax issues, including the potential for consolidated filings and tax-sharing agreements to impede the wind-down process.

AT The OUTset of liquidation

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