If your CPA, financial advisor, or insurance agent introduced you to one of these plans and now the IRS is after you, contact us immediately. You may be a victim of insurance fraud. We want to help protect your business and your hard-earned income.
Likewise, if you currently participate in one of these plans, and are worried about whether the IRS will penalize you, give us a call. We can help you make sure your plan is legit, and that no one tried to trick you in order to get a huge commission.
How your CPA, financial advisor, or insurance agent may be responsible for your audit:
- Improper filing of form 8886
- Misrepresentation of the tax code
- Misunderstanding of the tax code
- Failure to explain certain details of the plan
- Bad math/calculations
- Dishonesty
Despite these mistakes or misleadings by your CPA, financial advisor, or insurance agent, the IRS will come after you, the small business owner, if something is amiss. Where is the justice? These advisors should be held responsible for the damages you are incurring. We want to help you fight the people who took advantage of you and make them accountable for their actions.
ReplyDeleteThe 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
ww.taxlibrary.
ReplyDeleteus.
The information provided herein is not intended as legal, accounting, financial or any
other type of advice for any specific individual or other entity. You should contact an
appropriate professional for any such advice.
lance wallach for section 79 412 419 and other problems
ReplyDeletesection 79 plan or scam www.taxaudit419.com for help
ReplyDeleteinsurance reportable or listed transactions by the IRS,Section 79, Section 79 ...
ReplyDeleteYou shared this on Google+
Section 79 Plans, Pt. I: Why you shouldn't sell them - ProducersWeb
www.producersweb.com/r/WPI/d/contentFocus/?pcID...
Apr 12, 2010 - What is a Section 79 Plan? Simply put, it is a tax plan where small business owners are allowed to take a 20 percent to 40 percent deduction ...
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ReplyDelete200K Report Update-
419, 412i, Sect 79, Captive Insurance
March 14,2013
Lance Wallach
516-938-5007
LANCE WALLACH HELPS IRS
Lance Wallach even tries to help the IRS go after the sellers of abusive 419, 412i, captive insurance and section 79 plans. He has also spoken at conventions partially sponsored by the IRS, met with IRS officials at their headquarters in Washington D.C. and has received phone calls from the IRS on point.
Lance Wallach does NOT give the IRS the names of people that RETAIN him to help them. Lance does not give the IRS the names of people that he refers to others for help.
To: Itzkowitz Ronald R
Subject: Lance Wallachfor the Pettibone Tavern..."
Material Advisors & 419 Plans Litigation
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Wednesday, September 5, 2012
Welfare Benefit Plans - Big Risks for Accountants
By Brian
Tens of thousands of welfare benefit plans are in existence. Some are legitimate but many are not. Unfortunately for taxpayers and their financial advisers, the IRS views all such plans with suspicion. These plans carry big risks for both the participants and the promoters. New enforcement actions by the IRS and civil claims by participants reveal the dangers for accountants as well.
Every year, many accountants sign returns in which their client claims a deduction for a welfare benefit plan. The IRS often considers these plans, created by section 419 of the Internal Revenue Code, to be listed transactions. In addition to the normal tax return disclosures, listed transactions must also be reported on Form 8886. Failure to properly file can lead to penalties of $100,000 for individuals and $200,000 for entities. Those penalties are per year!
Accountants must be certain they fully understand what transactions the IRS considers abusive. These transactions include certain 401(k) accelerated deductions, collectively bargained welfare benefit funds (sec. 419a(f)(5)), certain trust arrangements under section 419 and deductions for certain defined benefit plans (sec. 4129i)). It is important to remember that the IRS defines listed transactions to include any transaction that is substantially similar to one of the above.
Accountants can also get caught up in the penalty web if they were a material advisor. If you sign a return taking a deduction for one of these listed plans or if you sold the plan, you could find yourself facing significant penalties of $200,000 or more. (Material advisors must file IRS form 8918.)
Unscrupulous promoters often package their plans with legal opinion letters suggesting that their particular plan is not an abusive tax shelter and that the taxpayer need not comply with the Form 8886 filing requirement. Don't rely on those opinions. A third party opinion is no substitute for proper due diligence and review.
A second trap for unwary accountants is the civil liability they face. Financial planners and promoters market many of these plans. Often they are marketed through seminars. Some promoters offer commissions to lawyers and accountants who refer their clients. Earn a commission or opine on the tax deductibility of the plan