A Little Economic Satire: MSCPA -IRS Attacks Biz Owners 419, 412, Section 79 Lance Wallach

Wednesday, April 24, 2024

MSCPA -IRS Attacks Biz Owners 419, 412, Section 79 Lance Wallach

12 comments:

Lance WallachJanuary 21, 2015 at 11:30 AM

Section 79 Plans
412i, 419e plans litigation and IRS Audit Experts for abusive insurance reportable or listed transactions by the IRS,Section 79, Section 79 Lawsuits,412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.Benistar,412i Lawsuits,419 lawsuits,412i Help,419 Help,Section 79 Audits,412i Problems,412i problems, Expert Witness Lance Wallach,412i Help,419 Help, Section 79 problem, Section 79 Life Insurance,

Wednesday, January 8, 2014

WHAT IS A SECTION 79 PLAN?
Section 79 plans are commonly known for the $50,000 free term life insurance they can provide for employees. Less commonly known is that Section 79 plans can also provide permanent life insurance. These plans are employee benefit plans established under Section 79 of the Internal Revenue Code. Section 79 plans are non-qualified plans but they are tax-deductible plans for the adopting employer.
WHAT ARE THE BENEFITS OF A SECTION 79 PLAN?
Section 79 plans provide life insurance benefits for employees paid for by the employer. The life premiums paid are 100% tax-deductible to the business. The "economic benefit" of the life insurance is reportable as taxable income for the insured employee. Only life insurance in excess of $50,000 is reportable. The "economic benefit" is determined using the rates under Table I ( Reg. §1.79-3(d)(2)). When permanent insurance is used the reportable economic benefit can be as little as 60% of the actual premium paid and deducted. This can provide a tax-advantaged way to purchase personal life insurance.
CAN ANY BUSINESS ADOPT A SECTION 79 PLAN?
Section 79 plans are only for employees. Self-employed individuals, partners and owners of S corporations are not employees. For an owner to participate the sponsoring employer must be a C Corporation.
MUST EVERY EMPLOYEE BE INCLUDED IN THE PLAN?
Non-discrimination rules do apply. 70% of all full time employees must benefit, or 85% of participants must be non-key employees. All participants must be offered the same type and amount of benefits. Special rules apply for companies with less than ten employees.
WHAT OPTIONS ARE TYPICALLY OFFERED IN A SECTION 79 PLAN THAT INCLUDES PERMANENT INSURANCE?
Typically, employees are offered three options. (1) Permanent life insurance with a death benefit that is a multiple of salary, (2) term insurance with a death benefit that is a multiple of salary, and (3) $50,000 group term insurance. The multiple of salary offered is usually defined by how much insurance the business owner wants for him or herself. Everyone will be offered the same multiple of salary. Option 1, permanent insurance, will produce the largest reportable economic benefit added to the taxable income of the employee, Option 2 will provide a significantly lower reportable economic benefit added to the taxable income of the employee, and Option 3 will result in no economic benefit added to the employee's taxable income.
These plans are sold so insurance agents can make commissions.
ReplyDelete
Replies
Lance WallachJanuary 21, 2015 at 11:30 AM

The Offices of Lance Wallach :
America's leading Financial
Services firm "(TM)
The Lance Wallach advantage is credibility, experience & trust !!

Many advisory firms offer financial planning and investment services, but the difference is
that Lance Wallach wrote the books on Life Insurance, Financial & Estate planning that the
other consultants learned from!

If you want to sleep soundly at night, don't go to the students for your financial answers, go
to the one who teaches them, Lance Wallach!

For the past 25 years, successful businesses and individuals have turned to Lance Wallach
and his team for assistance, and they are glad they did!
Winning Team
When you choose the
Lance Wallach team, you
are on the winning team !
Lance Wallach Managing Director
Lance Wallach, Managing Director, is the nations leading expert on life insurance, annuities,
retirement & financial planning for business executives, sports figures, entertainers, affluent families
and successful entrepreneurs.

Mr. Wallach is a member of the AICPA faculty of teaching professionals, a frequent keynote speaker
at business conventions, a best selling financial author, and a renowned national financial expert in
many court cases.

Some of Mr. Wallach best selling financial & law books are:

* "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."
ReplyDelete
Replies
Lance WallachJanuary 21, 2015 at 11:31 AM
419_412i Plan Plan Abuses
412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.419 Plan, 412i Plan

Wednesday, January 7, 2015
Insurance Agents: Help for those who sold 419 and 412i plans.
Insurance Agents: Help for those who sold 419 and 412i plans.
Posted by Lance Wallach at 11:30 AM
Labels: 412, 412(i), 412i Benefit Plan, 419 Plans, Lance Wallach Expert Witness, Lance Wallach Expert Witness
1 comment:

Lance WallachJanuary 14, 2015 at 7:46 AM
Toolbox for Finance Topics Tax Blogs
IRS Audits 419, 412i, Captive Insurance Plans With Life Insurance, and Section 79 Scams
Companies should carefully evaluate proposed investments in plans such as the Benistar Plan. The claimed deductions will not be available, and penalties will be assessed for lack of disclosure if the investment is similar to the investments described in Notice 95-34. In addition, under IRC 6707A, IRS fines participants a large amount of money for not properly disclosing their participation in listed, reportable or similar transactions; an
ReplyDelete
Replies
Lance WallachJanuary 21, 2015 at 11:32 AM

419_412i Plan Plan Abuses
412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.419 Plan, 412i Plan

Wednesday, August 13, 2014
IRS Clarifies Legality of 419(e) Plans
IRS Clarifies Legality of 419(e) Plans
Posted by Lance Wallach at 12:04 PM
Labels: 412, 412(i), 419 Plan, 419 Plans, 419 Planshelters
6 comments:

Lance WallachSeptember 29, 2014 at 11:05 AM
Copyright (C) 2014

ROBIN S. WEINGAST & ASSOCIATES,
INC., ROBIN S. WEINGAST, DESIGNS
FOR FINANCE, INC., and CAPITAL
ONE, N.A. as successor to NORTH
FORK BANK AND TRUST CO., and
POINTE BENEFIT CONSULTANTS,
LLC.,

Defendants.

DENNIS M. CAVANAUGH, U.S.D.J.

This matter comes before the Court upon motions by Defendants Robin S. Weingast
&
Associates, Inc. and Robin S. Weingast (collectively the “Weingast Defendants”)
(ECF No. 24),
Defendant Designs for Finance, Inc. (“Designs”)(ECF No. 27), Defendant
Pointe Benefit
Consultants, LLC (“Pointe Benefit”)(ECF No. 29), and Defendant Capital One, N.A.
(“Capitol
One”)(ECF No. 31) to dismiss Plaintiffs Jeffrey Rapaport M.D., P.A. (“JRMDPA”),
Jeffrey
Rapaport (“Rapaport”), and Amanda Rapaport’s (collectively “Plaintiffs”) Complaint in
this action
pursuant to FED. R. CIV. P. 12(b)(6). Pursuant to FED. R. CIV. P. 78, no oral
argument was heard.
After considering the submissions of the parties, it is the decision of this Court for the
reasons herein
expressed that the motions to dismisssubmitted by Defendants Designs, Pointe
Benefit, and Capital
One are granted and the motion to dismiss by the Weingast Defendants is denied.

To Read More:

http://baritzcolman.com/p

Reply
ReplyDelete
Replies
Lance WallachJanuary 22, 2015 at 9:39 AM
419_412i Plan Plan Abuses
412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.419 Plan, 412i Plan

Wednesday, January 7, 2015
Insurance Agents: Help for those who sold 419 and 412i plans.
Insurance Agents: Help for those who sold 419 and 412i plans.
Posted by Lance Wallach at 11:30 AM
Labels: 412, 412(i), 412i Benefit Plan, 419 Plans, Lance Wallach Expert Witness, Lance Wallach Expert Witness
1 comment:

Lance WallachJanuary 14, 2015 at 7:46 AM
Toolbox for Finance Topics Tax Blogs
IRS Audits 419, 412i, Captive Insurance Plans With Life Insurance, and Section 79 Scams
Companies should carefully evaluate proposed investments in plans such as the Benistar Plan. The claimed deductions will not be available, and penalties will be assessed for lack of disclosure if the investment is similar to the investments described in Notice 95-34. In addition, under IRC 6707A, IRS fines participants a large amount of money for not properly disclosing their participation in listed, reportable or similar transactions; an issue that was not before the Tax Court in either Curcio or McGehee. The disclosure needs to be made for every year the participant is in a plan. The forms need to be properly filed even for years that no contributions are made. I have received numerous calls from participants who did disclose and still got fined because the forms were not filled in properly. A plan administrator told me that he assisted hundreds of his participants file forms, and they still all received very large IRS fines for not properly filling in the forms.
ReplyDelete
Replies
Lance WallachFebruary 4, 2015 at 9:47 AM
IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A
d, 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 AICPA best-selling books including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots.

Contact him at:
516.938.5007,
wallachinc@gmail.com, or
www.taxadvisorexperts.org, or
www.taxlibrary.us.

Share This Article With a Friend

Lance Wallach speaks and writes about benefit plans, and has authored numerous books for the AICPA, Bisk Total tape, and others. He can be reached at (516) 938-5007 or wallachinc@gmail.com. For more articles on this or other subjects, feel free to visit his website at www.taxadvisorexperts.org.

Lance Wallach, the National Society of Accountants Speaker of the Year, speaks and writes extensively about retirement plans, Circular 230 problems and tax reduction strategies. He speaks at more than 40 conventions annually, writes for over 50 publications, is quoted regularly in the press, and has written numerous best-selling AICPA books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Business Hot Spots. He does extensive expert witness work and has never lost a case. Contact him at 516.938.5007 or visit www.taxadvisorexperts.org.
Read 3 comments
ReplyDelete
Replies
UnknownApril 23, 2015 at 3:14 AM
The Truth About Section 79 Permanent Insurance Plans

Section 79 plans are a part of the employee benefit section of the Internal Revenue Service code (IRC). This code (IRC code Section 1.79) has been a part of the IRC since it was initially adopted in 1953. The President of the United States at that time was Dwight D. Eisenhower.

Section 79 permanent insurance plans are sold within the United States by large national life insurance companies, all of whom have internal legal and compliance departments whose role is to ensure that the products sold by those companies are legal and comply with the rules and spirit of the law. Section 79 permanent insurance plans are sold legally in all 50 states of these United States of America. For the protection of consumers, each state has an insurance department that reviews and approves all company and agent licensing and products sold within that state. (see National Association of Insurance Commissioners at this link).

So, here’s the truth about Section 79 Permanent Insurance Plans:
• This is a legal insurance product, covered in the IRS Code number 1.79.
• All group life insurance is covered under this IRS Code. Most governmental agencies, non-profit organizations and large Fortune 1,000 companies have section 79 as an employee benefit.
• This is not a new code. The IRC 1.79 has been in the code since 1953.
• All Section 79 products are fully vetted by major national insurance companies, their lawyers and compliance staffs, for sale in all 50 states. These are companies with long and successful histories of selling insurance products in the United States since the mid-1800’s.
• Every state insurance department has fully vetted these Section 79 products and approved them for sales in their states. These products are legal for sale in all 50 states.
• Section 79 plans are not “listed transactions.” Here is a list of all listed transactions according to the IRS – http://www.irs.gov/Businesses/Corporations/Listed-Transactions---LB&I-Tier-I-Issues

There is no need to fear the innuendo of an internet spammer. For REAL information about Section 79 plans, contact Business Planning Group at (888)545-2205 or visit our website at BusinessPlanningGroup.com/truth .
ReplyDelete
Replies

Add comment

Sign Up Now

Wednesday, April 24, 2024

MSCPA -IRS Attacks Biz Owners 419, 412, Section 79 Lance Wallach

12 comments: