412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS
412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS
HOME
ReplyDeleteCONTACT
SECTION79ARTICLES
SECTION
79
PROBLEM
CPA Massachusetts Society Of Certified Public Accountants, Inc.
Winter 2010 IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A By Lance Wallach Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in big trouble. 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 To Read More Click Link
AccountingToday
The dangers of being "listed" A warning for 419, 412i, Sec.79 and captive insurance Accounting Today: October 25, 2010 By: Lance Wallach Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in
big trouble. 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 ($200,000 for a business and $100,000 for an individual) for failure to file Form 8886 with respect to a listed transaction. But you are also in trouble if you file incorrectly.
To Read More Click Link
TaxPro Journal
Fall 2008 If I Were President… NATP members propose new tax law changes Change. Americans have heard a lot of rhetoric over the past few months from politicians who are no longer satisfied with the status quo. Though you’d be hard pressed to find anyone who agrees with everything a candidate says, one thing is clear—the public could be better served. As a tax professional, your top priority is serving your clients. You work hard to make sure they don’t pay more than their fair share of taxes. But, what exactly is fair? We asked NATP
Abusive Tax Sheltersplan does not pass IRS muster?
ReplyDeleteLance Wallach take on this article. I do not think it is all up to date. For more on 419 scams Google me or try www.taxaudit419.com for lots of articles. We have been helping people for years with these problems.
Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA’s course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications. For more information and additional articles on these subjects, visit www.vebaplan.com, www.taxlibrary.us, lawyer4audits.com or call 516-938-5007
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.
Lawyer 4 Audits .comal
ReplyDeletehedge funds and is “senior advisor” for an outfit called Private International Wealth Management, and
is thought to be affiliated with FuturesOne LLC, a commodities pool located in Lincoln, Neb.
Battoo has been trying to cover up his failures and overstate the value his investments “in a number
of ways,” the SEC said. When soliciting investors, Battoo has claimed an outstanding track record and
“exceptional risk-adjusted returns,” according to the SEC. The agency calls Battoo’s financial empire
“an amorphous syndicate of far-flung funds, entities and affiliates.”
To Read More Click Link Below:
http://gettracysunderlagehelp.blogspot.com/2012/12/nikolai-s-battoo-fund-manager-chased-by.html
IRS
Abusive Offshore Tax Avoidance Schemes - Questions and Answers
Questions and Answers
Q. I keep hearing about "Foreign Trusts". Is that what this is about?
A. Yes and no. Initially, the need for enhanced "offshore" compliance efforts was determined as a
result of noncompliance observed in numerous trusts. Trusts lend themselves to being the type of
entity through which income and assets are more easily hidden or disguised. Because they are flow-
through entities, the facts behind true ownership of income or assets may be difficult to establish.
Secrecy laws found in most tax havens only compound this difficulty. Many different foreign entities
and schemes are being promoted and used by U.S. taxpayers to evade tax. The list includes the use
of:
• Foreign trusts
• Foreign corporations
• Foreign (Offshore) partnerships, LLCs and LLPs
• International Business Companies
• Offshore private annuities
• Offshore private banks
• Personal investment companies
• Captive insurance companies
• Offshore bank accounts and credit cards
• Related party loans
It is important to note that the list is not all-inclusive. Promoters of such schemes always appear to be
"improving" the products and services that they market.
To Read More CLick Link Below:
http://kmjradiolance3.blogspot.com/2013/02/abusive-offshore-tax-avoidance-schemes.html
The "Tax Resolution" Offices of "Lance Wallach"
ReplyDeleteThere’s been discussion of “opting out” of the program to take your chances in audit, but it’s a topic fraught with danger. Now, however, there is guidance about opting out of the program that makes much of it transparent. Because of this late date it is recommended that you properly file FBARs and the 90-day request for amnesty extension. This is the first important step. If the forms are not done properly, you will have extensive problems and will not have to think about opting out. If your forms are properly done and filed, then your situation should be discussed with someone who is experienced in these matters.
Under the OVDI, taxpayers are subject to a penalty of 25 percent of the highest aggregate account balance on their undisclosed account(s) between 2003 and 2010. If the value was less than $75,000 at all times during those years, the penalty is only 12.5 percent.
These account balance penalties are in lieu of all other penalties that may apply, including FBAR and offshore-related information return penalties. Plus, participants are required to pay taxes and interest on any monies (such as interest income on foreign accounts) they previously failed to report. Finally, they must pay an accuracy-related penalty equal to 20 percent of the underpayment of tax, plus interest.
Opting out of the program can make sense for some, though it involves taking your chances with an IRS examination. Someone should represent you with extensive experience in this. We always suggest they should at least be a CPA with years of experience in international tax. It’s even better if you use one that was with the international tax division of the IRS for a number of years. The IRS has published a separate guide detailing the rules and procedures for opting out.
Here are some of the rules:
1. IRS Summary. The IRS employee who has been handling your case summarizes it, agreeing or disagreeing with your view of penalties, and listing how extensive an audit he or she recommends.
2. Program Status Report. Before you can opt out, the IRS sends a letter reporting on the status of your disclosure and what you still must submit. If you’ve given enough data, the IRS will calculate what you would owe under the OVDI. You should provide any missing items within 30 days.
3. Taxpayer Submission. Within 20 days, the taxpayer opts out in writing and makes a written case what penalties should apply and why.
4. Central Committee. A Committee of IRS Managers reviews the summary and decides how extensive an audit to conduct. The IRS says “the taxpayer is not to be punished (or rewarded) for opting out.” The Committee also decides whether to assign your case
419_412i Plan Plan Abuses
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.419 Plan, 412i Plan
g out of the program that makes much of it transparent. Because of this late date it is recommended that you properly file FBARs and the 90-day request for amnesty extension. This is the first important step. If the forms are not done properly, you will have extensive problems and will not have to think about opting out. If your forms are properly done and filed, then your situation should be discussed with someone who is experienced in these matters.
Under the OVDI, taxpayers are subject to a penalty of 25 percent of the highest aggregate account balance on their undisclosed account(s) between 2003 and 2010. If the value was less than $75,000 at all times during those years, the penalty is only 12.5 percent.
These account balance penalties are in lieu of all other penalties that may apply, including FBAR and offshore-related information return penalties. Plus, participants are required to pay taxes and interest on any monies (such as interest income on foreign accounts) they previously failed to report. Finally, they must pay an accuracy-related penalty equal to 20 percent of the underpayment of tax, plus interest.
Opting out of the program can make sense for some, though it involves taking your chances with an IRS examination. Someone should represent you with extensive experience in this. We always suggest they should at least be a CPA with years of experience in international tax. It’s even better if you use one that was with the international tax division of the IRS for a number of years. The IRS has published a separate guide detailing the rules and procedures for opting out.
Here are some of the rules:
1. IRS Summary. The IRS employee who has been handling your case summarizes it, agreeing or disagreeing with your view of penalties, and listing how extensive an audit he or she recommends.
2. Program Status Report. Before you can opt out, the IRS sends a letter reporting on the status of your disclosure and what you still must submit. If you’ve given enough data, the IRS will calculate what you would owe under the OVDI. You should provide any missing items within 30 days.
3. Taxpayer Submission. Within 20 days, the taxpayer opts out in writing and makes a written case what penalties should apply and why.
4. Central Committee. A Committee of IRS Managers reviews the summary and decides how extensive an audit to conduct. The IRS says “the taxpayer is not to be punished (or rewarded) for opting out.” The Committee also decides whether to assign your case
ReplyDeleteLance Wallach, Managing Director, is the
nation's leading expert on employee benefit plans,
tax problem resolution and IRS audit defense.
Mr. Wallach is a member of the AICPA faculty of
teaching professionals & a renowned national
expert in many court cases. He is the author of
many best selling financial & law books, including:
* "Wealth Preservation Planning" by the
National Society of Accountants
* "The CPA's Guide to Federal & Estate
Gift Taxation" published by Bisk
* The AICPA's "The team approach to Tax,
Financial & Estate planning."
* "The CPA's Guide to Life Insurance" by
Bisk CPEasy
* Avoiding Circular 230 Malpractice Traps
and Common Abusive Small Businesss Hot
spots by the AICPA, author/moderator
Lance Wallac