Recently I have received phone calls from participants in the Sea Nine VEBA and have learned that the IRS may be auditing many more participating employers in the coming months.
LANCE WALLACH I AM HERE TO ANSWER YOUR QUESTIONS ON TAXES, INSURANCE, AND THE IRS. THEME ARCHIVE 23 September 2014 SOURCE
Life Insurance, Listed, Abusive, IRS, Audits. 419 Plans Lawline.com Cont…
419 Welfare benefit plan 419 Help-Call 516-938-5007 23 September 2014 IRS and Mystery Fines 19 September 2014 Business Owners, Accountants, and Others Fined $200,000 by IRS and Don’t Know Why
By Lance Wallach
This article appeared in the November 2009 Newsletter to the New Jersey Association of Public Accountants
If you are a small business owner, accountant or insurance professional you may be in big trouble and not know it. IRS has been fining people like you $200,000. Most people that have received the fines were not aware that they had done anything wrong. What is even worse is that the fines are not appeal-able. This is not an isolated situation. This has been happening to a lot of people.
Currently, the Internal Revenue Service (“IRS”) has the discretion to assess hundreds of thousands of dollars in penalties under §6707A of the Internal Revenue Code (“Code”) in an attempt to curb tax avoidance shelters. This discretion can be applied regardless of the innocence of the taxpayer and was granted by Congress. It works so that if the IRS determines you have engaged in a listed transaction and failed to properly disclose it, you will be subject to a potentially draconian penalty regardless of any other facts and circumstances concerning the transaction. For some, this penalty has been assessed at almost a million dollars and for many it is the beginning of a long nightmare.
The following is an example: Pursuant to a settlement with the IRS, the 412(i) plan was converted into a traditional defined benefit plan. All of the contributions to the 412(i) plan would have been allowable if they had initially adopted a traditional defined benefit plan. Based on negotiations with the IRS agent, the audit of the plan resulted in no income and minimal excise taxes due. This is because as a traditional defined benefit plan, the taxpayers could have contributed and deducted the same amount as a 412(i) plan.
Towards the end of the audit the business owner received a notice from the IRS. The IRS assessed the client penalties under the §6707A of the Code in the amount of $900,000.00. This penalty was assessed because the client allegedly participated in a listed transaction and allegedly failed to file the form 8886 in a timely manner.
Read more.
#419e #412i #employee benefit plans #abusive tax shelters #tax shelters #419 #412 #412i plans #listed transactions #IRS #IRS Audits #IRS Penalties #Lance Wallach #Lance Wallach Expert Witness #Expert Witness #Expert Testimony #6707 #6707A #Section 79 #Section 79 plans #Abusive insurance #insurance litigation #life insurance litigation #insurance expert witness #life insurance expert witnesses Help with Common IRS Problems: 419 and 412 Plan Fraud 19 September 2014 There are Dangers of Being in Listed Transactions & Section 79 Plans 19 September 2014 Lance Wallach,IRS aUDITS 19 September 2014 FBAR OVDI Offshore Tax Issues - HG.org 19 September 2014 IRS Hiring Agents in Abusive Transactions Group 19 September 2014 by Lance Wallach
Here it is. Here is your proof of my predictions. Perhaps you didn’t believe me when I told you the IRS was coming after what it has deemed “abusive transactions,” but here it is, right from the IRS’s own job posting. If you were involved with a 419e, 412i, listed transaction, abusive tax shelter, Section 79, or captive, and you haven’t yet approached an expert for help with your situation, you had better do it now, before the notices start piling up on your desk.
Follow the link to read more.
This article also appeared in the Spring 2011 volume of Sumnews, The Newsletter
ReplyDeleteLANCE WALLACH
I AM HERE TO ANSWER YOUR QUESTIONS ON TAXES, INSURANCE, AND THE IRS. THEME ARCHIVE
23 September 2014 SOURCE
Life Insurance, Listed, Abusive, IRS, Audits. 419 Plans Lawline.com Cont…
419 Welfare benefit plan 419 Help-Call 516-938-5007
23 September 2014
IRS and Mystery Fines
19 September 2014
Business Owners, Accountants, and Others Fined $200,000 by IRS and Don’t Know Why
By Lance Wallach
This article appeared in the November 2009 Newsletter to the New Jersey Association of Public Accountants
If you are a small business owner, accountant or insurance professional you may be in big trouble and not know it. IRS has been fining people like you $200,000. Most people that have received the fines were not aware that they had done anything wrong. What is even worse is that the fines are not appeal-able. This is not an isolated situation. This has been happening to a lot of people.
Currently, the Internal Revenue Service (“IRS”) has the discretion to assess hundreds of thousands of dollars in penalties under §6707A of the Internal Revenue Code (“Code”) in an attempt to curb tax avoidance shelters. This discretion can be applied regardless of the innocence of the taxpayer and was granted by Congress. It works so that if the IRS determines you have engaged in a listed transaction and failed to properly disclose it, you will be subject to a potentially draconian penalty regardless of any other facts and circumstances concerning the transaction. For some, this penalty has been assessed at almost a million dollars and for many it is the beginning of a long nightmare.
The following is an example: Pursuant to a settlement with the IRS, the 412(i) plan was converted into a traditional defined benefit plan. All of the contributions to the 412(i) plan would have been allowable if they had initially adopted a traditional defined benefit plan. Based on negotiations with the IRS agent, the audit of the plan resulted in no income and minimal excise taxes due. This is because as a traditional defined benefit plan, the taxpayers could have contributed and deducted the same amount as a 412(i) plan.
Towards the end of the audit the business owner received a notice from the IRS. The IRS assessed the client penalties under the §6707A of the Code in the amount of $900,000.00. This penalty was assessed because the client allegedly participated in a listed transaction and allegedly failed to file the form 8886 in a timely manner.
Read more.
#419e #412i #employee benefit plans #abusive tax shelters #tax shelters #419 #412 #412i plans #listed transactions #IRS #IRS Audits #IRS Penalties #Lance Wallach #Lance Wallach Expert Witness #Expert Witness #Expert Testimony #6707 #6707A #Section 79 #Section 79 plans #Abusive insurance #insurance litigation #life insurance litigation #insurance expert witness #life insurance expert witnesses
Help with Common IRS Problems: 419 and 412 Plan Fraud
19 September 2014
There are Dangers of Being in Listed Transactions & Section 79 Plans
19 September 2014
Lance Wallach,IRS aUDITS
19 September 2014
FBAR OVDI Offshore Tax Issues - HG.org
19 September 2014
IRS Hiring Agents in Abusive Transactions Group
19 September 2014
by Lance Wallach
Here it is. Here is your proof of my predictions. Perhaps you didn’t believe me when I told you the IRS was coming after what it has deemed “abusive transactions,” but here it is, right from the IRS’s own job posting. If you were involved with a 419e, 412i, listed transaction, abusive tax shelter, Section 79, or captive, and you haven’t yet approached an expert for help with your situation, you had better do it now, before the notices start piling up on your desk.
Follow the link to read more.
This article also appeared in the Spring 2011 volume of Sumnews, The Newsletter