419 and 412i Plan Help: captive insurance plans

Showing posts with label captive insurance 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/

IRS Audits Focus on Captive Insurance Plans - Lance Wallach

419, 412i, captive insurance and section 79 problems

200K Report Update- Lance Wallach 419, 412i, Sect 79, Captive Insurance

The word Is Out About Captive Plans

“Supposedly, the word is out of the general counsel's office that the IRS in the last year or so has taken an increased interest in captives,” said Jay Adkisson, a partner at Riser Adkisson L.L.P. in Newport Beach, Calif., and chairman of the American Bar Association's committee on captive insurance. “There are more cases against captives than ever before.”

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…

Lance Wallach Life Insurance: February 2014

Captive Insurance & 419 Plans Litigation: March 2014

412i 419E IRS Audits and Problems: March 2014

Tuesday, November 27, 2012

CJA & Associates and 412i, 419, and Other Abusive Plans

For help with CJA & Associates and 412i, 419, and other abusive plans contact Lance Wallach at lawallach@aol.com or call 516-938-5007. Lance Wallach is the leading expert on 412i, 419, Section 79 and Captive Insurance Plans. Lance has helped hundreds of people resolve their problems and get all their money back, usually without a lawsuit. Google Lance Wallach and see why CJA & Associates, insurance companies, and the IRS do not want to fight with Lance Wallach.

47 comments:

Lance WallachJuly 31, 2013 at 8:22 AM

412i IRS audits, listed transactions
________________________________________
April 24, 2012 By Lance Wallach, CLU, CHFC
________________________________________

IRS auditing 412i plans
Protecting Clients From Fraud, Incompetence, and Scams
By: Lance Wallach
Published by John Wiley and Sons, Inc.
Copyright Ó 2010. All rights reserved.

Excerpts have been taken from this book about:

Bruce Hink, who has given me permission to utilize his name and circumstances, is a perfect example of what the IRS is doing to unsuspecting business owners. What follows is a story about Bruce Hink and how the IRS fined him $200,000 a year for being in what they called a “listed transaction”. In addition, I believe that the accountant who signed the tax return and the insurance agent who sold the retirement plan will each be fined $200,000 as material advisors. We have received a large number of calls for help from accountants, business owners, and insurance agents in similar situations. Don’t think this will happen to you. It is happening to a lot of accountants and business owners, because most of these so-called listed, abusive plans, or plans substantially similar to the so-called listed, are currently being sold by most insurance agents.

Bruce was a small business owne

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, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR and captive insurance plans. He speaks at more than ten conventions annually, writes for more than 50 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public 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, Bisk Education’s “CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation,” as well as the AICPA best-selling books, including “Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots.” He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxadvisorexpert.com.
The information provided herein 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.
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1. Lance WallachJune 18, 2014 at 3:58 AM
  
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  Lance Wallach, co-author of several AICPA books with Sid Kess (’48), has completed his forth CPE book for Bisk CPEasy on business valuations. Wallach writes for over 20 financial publications and speaks frequently at national conventions. He is also an expert witness on abusive tax shelters.
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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

419 and 412i Plan Help