Showing posts with label Section 79 plans. Show all posts

Did you purchase a Section 79 plan and run into trouble? Lance Wallach, insurance expert witness services can provide the help you need with your insurance problems.

Did you purchase a Section 79 plan and run into trouble? Lance Wallach, insurance expert witness services can provide the help you need with your insurance problems.

http://www.section79help.com/

Contact Lance Wallach for help with 419e, 412i, captive insurance, Section 79

Contact Lance Wallach for help with 419e,412i,captive insurance,Section 79

IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A

by Lance Wallach

In recent years, the IRS has identified many of these arrangements as abusive devices to funnel tax deductible dollars to shareholders and classified these arrangements as listed transactions." These plans were sold by insurance agents, financial planners, accountants and attorneys seeking large life insurance commissions. In general, taxpayers who engage in a “listed transaction” must report such transaction to the IRS on Form 8886 every year that they “participate” in the transaction, and you do not necessarily have to make a contribution or claim a tax deduction to participate. Section 6707A of the Code imposes severe penalties for failure to file Form 8886 with respect to a listed transaction. But you are also in trouble if you file incorrectly. I have received numerous phone calls from business owners who filed and still got fined. Not only do you have to file Form 8886, but it also has to be prepared correctly. I only know of two people in the U.S. who have filed these forms properly for clients. They tell me that was after hundreds of hours of research and over 50 phones calls to various IRS personnel. The filing instructions for Form 8886 presume a timely filling. Most people file late and follow the directions for currently preparing the forms. Then the IRS fines the business owner. The tax court does not have jurisdiction to abate or lower such penalties imposed by the IRS.

"Many taxpayers who are no longer taking current tax deductions for these plans continue to enjoy the benefit of previous tax deductions by continuing the deferral of income from contributions and deductions taken in prior years."

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419e 412i, tax shelters, IRS penalties, audits

Thursday, February 27, 2014

Section 79 by Lance Wallach, expert witness.

For businesses with 10 or fewer employees, the law prohibits full medical underwriting of the policies that are issued ("group" underwriting is required, which is much more risky for an insurance company).

Beginning this article, I wanted to reiterate my comments on implementing plans with fewer than 10 employees.

Amazingly, one of the insurance companies offering this plan seemly doesn't have the ability to issue non-medical underwriting policies. This is laughable and pathetic all at the same time, and a plan you'll want to stay far away from.

As I briefly alluded to in my previous article, one of the reasons I really do not like Section 79 plans is that they basically force employers and those helping them set up Section 79 plans to lie to the employees when implementing the plan.

Section 79 by Lance Wallach

Section 79 Plans: Section 79 by Lance Wallach, expert witness.

419, 412i Plan Abuses: MSCPA - IRS Attacks Biz Owners, Section 79

419_412i Plan Plan Abuses: MSCPA -IRS Attacks Biz Owners 419, 412, Section 79 Lance Wallach

419,412i Plan Abuses: Captive Insurance and Section 79 Problems By Lance Wallach, CLU, CHFC…

419_412i Plan Plan Abuses: 19, 412i, Captive Insurance and Section 79 Problems By Lance Wallach, CLU, CHFC…

Options for people in 419e, 412i, captive insurance, Section 79

Options for people in 419e,412i,captive insurance,Section 79

Section 79 Plans : The Dangers of Being Listed

Section 79 Plans: 419, 412i, Captive And Section 79 Plans Continue T...

Section 79 Plans: 419, 412i, Captive And Section 79 Plans Continue T...: Recent court cases have highlighted serious problems in welfare benefit plans issued by Nova Benefit Plans. Recently unsealed IRS criminal c...

Captive Insurance Problem

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Get Help From the man that writes the books: not from the students.

Google Lance Wallach and whomever is advising you: Who do you trust?

CONTACT OUR NATIONAL OFFICE – We're here to help find the answers and create the solutions you need. Don't let yourself get buried in details. Contact Lance Wallach Today 516-938-5007.

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The IRS Might be Looking For You

If you have received a notice that you are being audited by the IRS you may be subject to huge fines and penalties. Get Help with this problem before the IRS takes all your money.

Section 79 Plans: 419, 412i, Captive And Section 79 Plans Continue T...

Captive Insurance Problem

Find out how we can fight for you >

Get Help From the man that writes the books: not from the students.

Google Lance Wallach and whomever is advising you: Who do you trust?

CONTACT OUR NATIONAL OFFICE – We're here to help find the answers and create the solutions you need. Don't let yourself get buried in details. Contact Lance Wallach Today 516-938-5007.

learn about our services >

Overwhelmed? we can help >

Use the teacher not the student

The IRS Might be Looking For You

If you have received a notice that you are being audited by the IRS you may be subject to huge fines and penalties. Get Help with this problem before the IRS takes all your money.

Section 79 Plans: 419, 412i, Captive And Section 79 Plans Continue T...

Captive Insurance Problem

Find out how we can fight for you >

Get Help From the man that writes the books: not from the students.

Google Lance Wallach and whomever is advising you: Who do you trust?

CONTACT OUR NATIONAL OFFICE – We're here to help find the answers and create the solutions you need. Don't let yourself get buried in details. Contact Lance Wallach Today 516-938-5007.

learn about our services >

Overwhelmed? we can help >

Use the teacher not the student

The IRS Might be Looking For You

If you have received a notice that you are being audited by the IRS you may be subject to huge fines and penalties. Get Help with this problem before the IRS takes all your money.

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Large IRS Fines Continue For 419, 412i, Captive Insurance and Section79 Plans

Guest Post by Lance Wallach

Taxpayers must report certain transactions to the IRS under Section 6707A of the Tax Code, which was enacted in 2004 to help detect, deter, and shut down abusive tax shelter activities. For example, reportable transactions may include being in a 419,412i, or other insurance plan sold by insurance agents for tax deduction purposes. Other abusive transactions could include captive insurance and section 79 plans, which are usually sold by insurance agents for tax deductions. Taxpayers must disclose their participation in these and other transactions by filing a Reportable Transactions Disclosure Statement (Form 8886) with their income tax returns. People that sell these plans are called material advisors and must also file 8918 forms properly. Failure to report the transactions could result in very large penalties. Accountants who sign tax returns, which have these deductions, can also be called material advisors and should also file forms 8918 properly.

The IRS has fined hundreds of taxpayers who did file under 6707A. They said that they did not fill out the forms properly, or did not file correctly. The plan administrator of a 412i advised over 200 of his clients how to file. They were then all fined by the IRS for filling out the forms wrong. The fines averaged about $500,000 per taxpayer.

A report by the Treasury Inspector General for Tax Administration (TIGTA) found that the procedures for documenting and assessing the Section 6707A penalty were not sufficient or formalized, and cases often are not fully developed.

TIGTA evaluated the IRS’s effectiveness in identifying, developing, and applying the Section 6707A penalty. Based on its review of 114 assessed Section 6707A penalties, TIGTA determined that many of these files were incomplete or did not contain sufficient audit evidence. TIGTA also found a need for better coordination between the IRS’s Office of Tax Shelter Analysis and other functions.

The Section 6707A penalty is a stand-alone penalty and does not require an associated income tax examination; therefore, it applies regardless of whether the reportable transaction results in an understatement of tax. TIGTA determined that, in most cases, the Section 6707A penalty was substantially higher than additional tax assessments taxpayers received from the audit of underlying tax returns. I have had phone calls from taxpayers that contributed less than $100,000 to a listed transaction and were fined over $500,000. I have had phone calls from taxpayers that went into 419, or 412i plans but made no contributions and were fined a large amount of money for being in a listed transaction and not properly filing forms under IRC section 6707A. The IRS claims that the fines are non-appealable.

If you are, or were in a 412i, 419, captive insurance or section 79 plan you should immediately file under 6707A protectively. If you have already filed you should find someone who knows what he is doing to review the forms. I only know of two people who know how to properly file. The IRS instructions are vague. If a taxpayer files wrong, or fills out the forms wrong he still gets the fine. I have had hundreds of phone calls from people in that situation.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He writes about 412(i), 419, and captive insurance plans. He speaks at more than ten conventions annually, writes for more than 20 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, BiskEducation’s CPA’s Guide to Life Insuranceand Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and his side has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com, or visitLanceWallach.com, www.taxaudit419.com or www.taxlibrary.us.

The information provided by Lance is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

[Ed. Note: Lance Wallach is the expert witness we use in our welfare benefit plan cases. Frequently the owner (taxpayer) of one of these plans received bad advice from a broker, insurance agent and sometimes an accountant. Many people sell these plans but few fully understand them - if they did you wouldn't be reading this article! If you purchased one of these bad plans, you need representation before the IRS and help in recovering any penalties from the people who sold you the plan. With penalties usually over $100,000, do not attempt this on your own.

If you lost money and want to get it back, contact

Section 79, The Catch

https://section79.wordpress.com/the-catch/

Section 79 Help - Lance Wallach

Lance Wallach

IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A

Lance Wallach : Services

IRS Criminal Investigation Department Audits Section 79, Captive Insurance, 412i and 419 Scams

IRS Criminal Investigation (CI) has developed a nationally coordinated program to combat these abusive tax schemes. CI's primary focus is on the identification and investigation of the tax scheme promoters as well as those who play a substantial or integral role in facilitating, aiding, assisting, or furthering the abusive tax scheme, such as accountants or lawyers. Just as important is the investigation of investors who knowingly participate in abusive tax schemes.

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