Small Business Retirement Plans Fuel Litigation: About Us
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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ReplyDelete419 Plans Attacked by IRS:
Huge Fines Imposed
419e Article
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Expert Advice
By Robert Sherman
8886 and 8918 form expert
October 15, 2010
Welfare benefit plans are vehicles by which employers offer current employees and
retirees certain types of insurance coverage, most often life insurance and health
insurance, as well as other benefits. Also often included are severance payments
and/or educational funding. If these plans are properly designed and comply with IRC
Sections 419 and 419A, they offer employers a valid tax deduction. The problem, from
a tax, audit, interest and penalties standpoint, is that most fail to comply with Federal
tax law.
The IRS has therefore, over the years, intermittently targeted welfare benefit plans,
and it currently regards most of them as “listed transactions.” Listed transactions are
transactions that have been specifically identified by the Service in
appropriate professional for any such advice.