Did You Buy a Section 79 Plan
Section 79 Plans are insurance plans sold to small business
owner that the IRS considers abusive and will audit. Before you buy into this
type of plan, captive insurance or any other type of plan, you should know its
history.
Find more help at these websites:
Lance
Wallach, captive insurance and Section 79 plan expert, is the nation's leading
authority on resolving IRS tax problems for individuals and businesses.
Mr. Wallach, National Society of Accountants' Speaker of the Year, is a member of the AICPA faculty of teaching professionals and he is a renowned national expert witness in many 419, 412i, and financial abuse cases. To date his side has never lost a case.
Mr. Wallach is often a featured speaker at national conventions for CPAs, attorneys, and business owners and other entrepreneurs, and has over 30 years experience helping people get the most possible money back from the IRS. He can be contacted at 516-938-5007 or wallachinc@gmail.com, or visit www.taxaudit419.com for more information.
Mr. Wallach, National Society of Accountants' Speaker of the Year, is a member of the AICPA faculty of teaching professionals and he is a renowned national expert witness in many 419, 412i, and financial abuse cases. To date his side has never lost a case.
Mr. Wallach is often a featured speaker at national conventions for CPAs, attorneys, and business owners and other entrepreneurs, and has over 30 years experience helping people get the most possible money back from the IRS. He can be contacted at 516-938-5007 or wallachinc@gmail.com, or visit www.taxaudit419.com for more information.
Section 79 plan[edit]
ReplyDeleteSection 79 of the Internal Revenue Code [1] details the tax consequences and requirements for corporations wishing to install a group-term life insurance plan. Permanent life insurance may also be offered as an added benefit in a Section 79 plan. Section 79 plans are non-qualified as defined by the Internal Revenue Code, but still offer a tax deduction for sponsoring employers.[2]
Employees participating in a Section 79 plan offered by a sponsoring corporation may receive up to $50,000 in group term life insurance at no cost, if the plan is non-discriminatory. Any amount over this limit is deemed a 'permanent benefit'. The employee should realize a portion of the permanent benefit as W-2 taxable income, and pay any applicable taxes accordingly. Contributions to a Section 79 plan are tax-deductible, though for owner(s), and 2% or more shareholders, contributions are only deductible if paid by, and from, a C Corporation.
Although the available number of insurance companies that sell a Section 79 permanent product may be limited, a Section 79 benefit program may allow the following benefits
Mr. Wallach is often a featured speaker at national conventions for CPAs, attorneys, and business owners and other entrepreneurs, and has over 30 years experience helping people get the most possible money back from the IRS. He can be contacted at 516-938-5007 or wallachinc@gmail.com, or visit www.taxaudit419.com for more information.