Jeff Gerber FollowJeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
IT IS UP TO YOU TO SEE THE BEAUTY OF EVERYDAY THINGS --- It’s all around us… yet so many of us swear up and down that life is hard, painful and scary. Yes… there are elements of this, but there is always the beauty as well, it’s up to us to CHOOSE to see it.
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
Lance Wallach Managing Director The Offices of Lance Wallach Serving clients nationwide
Call us today: 516-938-5007
Email us at:
LanWalla@aol.com Every one of our consulting attorneys, CPAs & ex IRS Agents has over 25 years of professional experience! We believe that no firm has more experienced professionals to assist our clients than we do! Specializing in the following services:
"IRS audit appeals" U.S. 'Tax Court' cases Multinational taxation consulting Incorporating your business Recovering losses from insurance companies & brokerage firms "Tax shelter analysis" "Pension plan reviews" & evaluations "419"& "412i" benefit plan analysis "419" & "412i plan" remediation Offshore tax shelter issues IRS "listed transactions" assistance
Our consulting attorneys, CPAs & ex IRS agents have helped our clients save hundreds of thousands of dollars successfully defending them in lawsuits, IRS audits & cutting IRS penalties. "America's leading Tax representing Firm "(TM) To Contact Mr. Wallach Click here Lance Wallach Managing Director
516-938-5007 taxaudit419.com
The Lance Wallach Network
TaxAudit419.com ReportableTransactions Listed Transactions IRS6707Apenalty IRSform8886 TaxAdvisorExperts ExpertTaxAdvisors Taxlibrary.us If The IRS Contacts You... Lance Wallach
Keep your mouth shut-take this advice seriously.
If you give the agents any opening, you're dead.
They'll start with soft background questions, but before you know it, will have trapped you. And many questions won't be genuine-that is, the agents already know the answers and are asking only to see if you will lie or confess.
Questions typically asked by agents include:
Have you reported all of your income? To Read More Click Link: If The IRS Contacts You...
“Benistar Plan is a thinly disguised vehicle for unlimited tax-deductible investments.”
In a recent U.S. Tax Court case, taxpayers suffered a double loss. The taxpayers, consisting of four couples, had purchased welfare benefit plans marketed by Benistar 419 Plan Services. Under the plan, Benistar provided preretirement life insurance to select employees of companies enrolled in the plan. Small employers like the plans because they allow pretax contributions to be shielded from taxation.
To Read More: Benistar Problems Abusive Insurance and Retirement Plans
Single–employer section 419 welfare benefit plans are the latest incarnation in insurance deductions the IRS deems abusive BY LANCE WALLACH SEPTEMBER
To read More Click Here Now Are You A Material Advisor Click link now Captive insurance plans, want to get audited?
Lance Wallach
When one scheme fails it isn’t long before a resourceful promoter comes up with a different product. Inevitably promoters find some lawyer or accountant to draft a favorable opinion letter and a new industry is born. In a few years, however, the IRS catches up and declares the arrangement to be a listed transaction and abusive tax shelter. As an expert witness I have never lost a case in this field. It is easy to beat the deep pockets of the insurance companies who provide product to these plans. Even though they have business owners sign fraudulent disclaimers saying that the owners will get their own tax advice. These disclaimers are then used when the inevitable happens, the IRS audits and the business owner sues the insurance company.
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
What confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
I prefer to follow the law as opposed to engage in "financial fantasies" (this was the wording the court used in Neonatology)
Notice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
+1 516.938.5007lance@expertwitness.taxNationwide - U.S.A Restricted Property Trusts Protect Yourself From IRS Audits HOME FILE FORM 8886 TODAY CONTACT US Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today! Need Help? Contact Us Today!
I was sitting in my office bored, which is what plan administration work will do to anyone, when the phone rang from our home office in Salt Lake City. The president of our company had a producer with him that had a client who was looking at a fully insured pension under 412 (e)(3) or a restrictive property trust.
“What?” I asked.
I have spent 30 years in tax law practice, three years in law school and taught as the lead faculty member for the Graduate Tax Program at Northeastern University and never saw restrictive property trust in the code or regulations.
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
What confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
I prefer to follow the law as opposed to engage in “financial fantasies” (this was the wording the court used in Neonatology)
In a traditional pension, if you want to purchase insurance, you can use up to 50 percent of the pension contribution to purchase a whole life policy. Rev. Rul. 74-307, IRC section 401(a).
Second, if you want to purchase insurance you can use up to 50 percent of the pension contribution to purchase a whole life policy in a fully insured pension or 412 e 3 plan. Rev. Rul. 74-307.
Third, if you want to purchase insurance you can use up to 50 percent of the pension contribution in a cash balance plan to purchase a whole life policy. Rev. Rul 74-307.
Finally, if you do not like pensions, you can use up to 50 percent of the profit sharing contribution to purchase whole life insurance in the profit sharing plan. In all these cases, the purchase is 100 percent deductible (assuming at death the benefits are received as a taxable annuity).
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
Before you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
Jeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Jeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
FINRA Allegations Without admitting or denying the findings, Crabb consented to the sanctions and to the entry of findings that he willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1. 7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Crabb, and the State of Ohio filed four tax liens against Crabb. Crabb disclosed one federal lien approximately seven years after learning of the lien's existence, one federal lien and three state liens approximately two years after learning of the liens' existence, and two federal liens approximately one year after learning of the liens' existence. For three federal liens and one state lien, totaling more than $ 1.1 million, Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Crabb falsely attested on his member firm's annual compliance questionnaires that he did not have any unsatisfied judgments or liens. Resolution Acceptance, Waiver & Consent(AWC) Sanctions Civil and Administrative Penalty(ies)/Fine(s) Amount $5,000.00
Sanctions Suspension Registration Capacities Affected All Capacities Duration six months Start Date 3/2/2020 End Date 9/1/2020
Sanctions The settlement includes a finding that Crabb willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member. Regulator Statement Fines paid in full on September 23, 2020.
Jeff Gerber
ReplyDeleteFollowJeff Gerber
Ins. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
need help
ReplyDeleteIT IS UP TO YOU TO SEE THE BEAUTY OF EVERYDAY THINGS --- It’s all around us… yet so many of us swear up and down that life is hard, painful and scary. Yes… there are elements of this, but there is always the beauty as well, it’s up to us to CHOOSE to see it.
ReplyDeleteI have a CPA and an Attorney. Why do I need you?
ReplyDeleteLance Wallach
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
ReplyDeleteLance Wallach
Managing Director
The Offices of Lance Wallach
Serving clients
nationwide
Call us today:
516-938-5007
Email us at:
LanWalla@aol.com
Every one of our consulting attorneys, CPAs & ex
IRS Agents has over 25 years of professional
experience! We believe that no firm has more
experienced professionals to assist our clients
than we do!
Specializing in the following services:
"IRS audit appeals"
U.S. 'Tax Court' cases
Multinational taxation consulting
Incorporating your business
Recovering losses from insurance companies
& brokerage firms
"Tax shelter analysis"
"Pension plan reviews" & evaluations
"419"& "412i" benefit plan analysis
"419" & "412i plan" remediation
Offshore tax shelter issues
IRS "listed transactions" assistance
Expert Witness Testimony For:
* Taxes
* Insurance & retirement plan cases
* SSI & Disability Advocates
Our consulting
attorneys,
CPAs & ex IRS
agents
have helped our
clients
save hundreds of
thousands of
dollars
successfully
defending them in
lawsuits,
IRS audits &
cutting IRS
penalties.
"America's leading Tax
representing Firm "(TM)
To Contact Mr. Wallach Click here
Lance Wallach Managing Director
516-938-5007 taxaudit419.com
The Lance Wallach Network
TaxAudit419.com ReportableTransactions Listed Transactions IRS6707Apenalty IRSform8886 TaxAdvisorExperts
ExpertTaxAdvisors Taxlibrary.us
If The IRS Contacts You...
Lance Wallach
Keep your mouth shut-take this advice seriously.
If you give the agents any opening, you're dead.
They'll start with soft background questions, but before you know it, will have trapped you. And many
questions won't be genuine-that is, the agents already know the answers and are asking only to
see if you will lie or confess.
Questions typically asked by agents include:
Have you reported all of your income?
To Read More Click Link: If The IRS Contacts You...
“Benistar Plan is a thinly disguised vehicle for unlimited tax-deductible investments.”
In a recent U.S. Tax Court case, taxpayers suffered a double loss. The taxpayers, consisting of four
couples, had purchased welfare benefit plans marketed by Benistar 419 Plan Services. Under the
plan, Benistar provided preretirement life insurance to select employees of companies enrolled in
the plan. Small employers like the plans because they allow pretax contributions to be shielded
from taxation.
To Read More:
Benistar Problems
Abusive Insurance and Retirement Plans
Single–employer section 419 welfare benefit plans are
the latest incarnation in insurance deductions the IRS
deems abusive
BY LANCE WALLACH
SEPTEMBER
To read More Click Here Now
Are You A Material Advisor
Click link now
Captive insurance plans,
want to get audited?
Lance Wallach
When one scheme fails it isn’t long before a
resourceful promoter comes up with a
different product. Inevitably promoters find
some lawyer or accountant to draft a
favorable opinion letter and a new industry
is born. In a few years, however, the IRS
catches up and declares the arrangement
to be a listed transaction and abusive tax
shelter. As an expert witness I have never
lost a case in this field. It is easy to beat the
deep pockets of the insurance companies
who provide product to these plans. Even
though they have business owners sign
fraudulent disclaimers saying that the
owners will get their own tax advice. These
disclaimers are then used when the
inevitable happens, the IRS audits and the
business owner sues the insurance
company.
Click Here now to Read More
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
ReplyDeleteWhat confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
I prefer to follow the law as opposed to engage in "financial fantasies" (this was the wording the court used in Neonatology)
Trust
ReplyDeleteNotice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
ReplyDelete+1 516.938.5007lance@expertwitness.taxNationwide - U.S.A
ReplyDeleteRestricted Property Trusts
Protect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today!
Need Help? Contact Us Today!
Office:516-938-5007 or Cell:516-236-8440
∞—∞—∞—∞—∞
IRS Form 8886
Rpt
ReplyDelete
ReplyDeleteI was sitting in my office bored, which is what plan administration work will do to anyone, when the phone rang from our home office in Salt Lake City. The president of our company had a producer with him that had a client who was looking at a fully insured pension under 412 (e)(3) or a restrictive property trust.
“What?” I asked.
I have spent 30 years in tax law practice, three years in law school and taught as the lead faculty member for the Graduate Tax Program at Northeastern University and never saw restrictive property trust in the code or regulations.
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
What confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
I prefer to follow the law as opposed to engage in “financial fantasies” (this was the wording the court used in Neonatology)
In a traditional pension, if you want to purchase insurance, you can use up to 50 percent of the pension contribution to purchase a whole life policy. Rev. Rul. 74-307, IRC section 401(a).
Second, if you want to purchase insurance you can use up to 50 percent of the pension contribution to purchase a whole life policy in a fully insured pension or 412 e 3 plan. Rev. Rul. 74-307.
Third, if you want to purchase insurance you can use up to 50 percent of the pension contribution in a cash balance plan to purchase a whole life policy. Rev. Rul 74-307.
Finally, if you do not like pensions, you can use up to 50 percent of the profit sharing contribution to purchase whole life insurance in the profit sharing plan. In all these cases, the purchase is 100 percent deductible (assuming at death the benefits are received as a taxable annuity).
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
Before you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
GET AUDITED BY IRS IN THIS PLAN
ReplyDeleteRESTRICTED TRUST GET AUDITED
ReplyDeleteJeff Gerber
ReplyDeleteIns. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Jeff Gerber
ReplyDeleteIns. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Content is very clear and easily explained it is very interesting aswell. I hope you postagain soon.
ReplyDeleteMaryland Employment Taxes
Maryland Offer In Compromise
ReplyDeleteFINRA
Allegations
Without admitting or denying the findings, Crabb consented to the sanctions and to the entry of findings that he willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1. 7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Crabb, and the State of Ohio filed four tax liens against Crabb. Crabb disclosed one federal lien approximately seven years after learning of the lien's existence, one federal lien and three state liens approximately two years after learning of the liens' existence, and two federal liens approximately one year after learning of the liens' existence. For three federal liens and one state lien, totaling more than $ 1.1 million, Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Crabb falsely attested on his member firm's annual compliance questionnaires that he did not have any unsatisfied judgments or liens.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Suspension
Registration Capacities Affected
All Capacities
Duration
six months
Start Date
3/2/2020
End Date
9/1/2020
Sanctions
The settlement includes a finding that Crabb willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member.
Regulator Statement
Fines paid in full on September 23, 2020.
Disciplinary Action Details
Maryland Employment Taxes
ReplyDeleteThe Restricted Property Trust just won a unanimous victory in the 6th Circuit Court of Appeals on 3/3/22. Mann Construction.
ReplyDelete