KENNETH ELLIOT: Sea Nine VEBA Important

KENNETH ELLIOT: Sea Nine VEBA Important: As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For...


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  1. 412i-419 Plans
    419 & 412i benefit plan,abusive tax shelters, Lance Wallach Expert Witness

    Wednesday, March 12, 2014
    412i-419 Plans: RAMESH SARVA: SARVA
    412i-419 Plans: RAMESH SARVA: SARVA: RAMESH SARVA: SARVA : Defendants have also directly and indirectly promoted the VEBA plan scheme to prospective participants. Sarva for his ...







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  2. google lance wallach for help with
    412i-419 Plans
    419 & 412i benefit plan,abusive tax shelters, Lance Wallach Expert Witness

    Wednesday, March 12, 2014
    412i-419 Plans: RAMESH SARVA: SARVA
    412i-419 Plans: RAMESH SARVA: SARVA: RAMESH SARVA: SARVA : Defendants have also directly and indirectly promoted the VEBA plan scheme to prospective participants. Sarva for his ...







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  3. www.vebaplan.com

    412i-419 Plans
    419 & 412i benefit plan,abusive tax shelters, Lance Wallach Expert Witness

    Wednesday, March 12, 2014
    412i-419 Plans: RAMESH SARVA: SARVA
    412i-419 Plans: RAMESH SARVA: SARVA: RAMESH SARVA: SARVA : Defendants have also directly and indirectly promoted the VEBA plan scheme to prospective participants. Sarva for his ...







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    #IRS

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    RS to Audit Sea Nine VEBA Participating Employers: Abusive Tax Shelters & 419 Plans Lawsuits: IRS to Audit Sea N...

    Defendants Organize, Operate and/or promote a scheme- VEBA PLANS
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  4. 1 IN THE UNITED STATES DISTRICT COURT FOR THE ...
    www.gpo.gov/.../USCOURTS-...‎
    United States Government Printing Office
    Nov 12, 2010 - Kenneth Elliott was an employee of Sea Nine and the administrator of the ... Mr. Elliott served two roles in regards to the VEBA plans: one as “the servicing .... items are very significant in sustaining the deductibility of employer ...
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    KENNETH ELLIOT: Sea Nine VEBA Important
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    Jan 7, 2014 - As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva.
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    by Lance Wallach - in 49 Google+ circles
    Jan 21, 2014 - Sarva for his part has been marketing Sea Nine's VEBA plans to customers ... Labels: Kae Consulting, Kenneth Elliot, Ramesh Sarva, Sarva, Sea Nine Veba, Vista Barranca ... KENNETH ELLIOT: Sea Nine VEBA Important
    You visited this page on 3/10/14.
    VEBA - Who is talking about VEBA on GOO

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  5. 412i-419 Plans 419 & 412i benefit plan,abusive tax shelters, Lance ...

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    Lance Wallach
    3 days ago - 419 & 412i benefit plan,abusive tax shelters, Lance Wallach Expert Witness Friday, March 7, 2014 412i-419 Plans: 412i-419 Plans: KENNETH ELLIOT: Sea Nine ...
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    Jan 24, 2014 - IRS audits section 79 419 412i plans. www.lancewallach.com for help ... Sea Nine VEBA, 419, 412i, IRS audits,Sea Nine VEBA, Benistar, Grist Mill Trust ..... KENNETH ELLIOT: HARM TO THE GOVERNMENT AND THE PUB. ... RAMESH SARVA: Sarva- More You Should Know · RAMESH SARVA: SARVA ...
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  6. KENNETH ELLIOT - 412i-419 Plans - Blogger
    419plans.blogspot.com/.../412i-419-plans-kenneth-elliot-sea-nine.html‎
    6 days ago - 412i-419 Plans: KENNETH ELLIOT: Sea Nine VEBA Important. 412i-419 Plans: KENNETH ... RAMESH SARVA: Sarva- More You Should Know
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    6 days ago - 412i-419 Plans: RAMESH SARVA: SARVA: RAMESH SARVA: SARVA ... 412i-419 Plans: KENNETH ELLIOT: Sea Nine VEBA Important.
    KENNETH ELLIOT - 412i-419 Plans - Blogger
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    1 day ago - 412i-419 Plans: KENNETH ELLIOT: Sea Nine VEBA Important. 412i-419 Plans: ... 412i-419 Plans: RAMESH SARVA: Sarva- More You Shou.
    412i-419 Plans: KENNETH ELLIOT: Sea Nine VEBA Important
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    6 days ago - KENNETH ELLIOT: Sea Nine VEBA Important: As of August 23,2013, the IRS has .... 412i-419 Plans: RAMESH SARVA: Sarva- More You Shou.
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    1 day ago - KENNETH ELLIOT: Sea Nine VEBA Important: As of August 23,2013, the IRS ... 412i-419 Plans: RAMESH SARVA: SARVA: RAMESH SARVA: ...
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  7. IRS tax relief firm, Lance Wallach, speaking
    Thursday, May 22, 2014

    Help with Common IRS Problems: 412i-419 Plans: Help with Common IRS Problems: Mat...
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    Lance Wallach
    Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He writes about 412(i), 419, and captive insurance plans. He speaks at more than ten conventions annually, writes for more than 20 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio's All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, 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. He does expert witness testimony and his side has never lost a case. Visit www.Attorneys-USA.org for more on this subject. National Toll Free Number 516-938-5007
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    Posted by Lance Wallach at 5/14/2014 1:36 PM
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    Tags: 412i IRS taxshelters tax_shelters lance wallach irs 419

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  8. Do I have to file IRS Form 8886 with my 2013 Tax Return?

    Any taxpayer participating in a multiple or single employer 419 plan or a 79 plan using cash value life insurance should consider whether to file IRS Form 8886 with their 2013 tax returns. See IRS Notice 2007-83.

    The IRS rules provide that any taxpayer who “participates” in a transaction for a year has an obligation to file IRS Form 8886. If a taxpayer has an obligation to file and fails to file timely, the taxpayer will be subject to a penalty under IRC 6707A that is the greater of 75% of the tax benefit shown on the return and the minimum penalty ($5,000 for individuals and $10,000 for businesses). An owner of an S Corporation would be subject to two penatlies, $10,000 at the S Corporation level and a penalty at the personal level.

    Sometimes promoters discourage taxpayers from filing Form 8886 as they fear it will create IRS interest in a promoter audit. Accordingly, taxpayers should seek independent advice as to whether their transaction may be treated as a “listed transaction” and if so, whether they have an obligation to file.

    Taxpayers should also consider whether they have an obligation to file Forms 8886 for past years. Although the filing of past-due forms will not eliminate the failure to file penalty, it will start the statute of limitations which otherwise may remain open indefinitely under IRC 6501(c)(10).

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  9. In recent months, 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. To better assist current Sea Nine clients and those that are now or may be under audit in the future, my associates who are CPAs, tax attorneys and former IRS employees will continue to help with the Sea Nine VEBA victims and others in 419 412i captive insurance and section 79 scams and answer the following:
    € What is the IRS's position with respect to the Sea Nine VEBA, 419 captive insurance and section 79 scams?
    € What will be the likely result of my audit?
    € What if I don't agree with my audit results?
    € What are other participants doing with respect to the audits?
    € Will the IRS impose interest and penalties?
    € What is a €listed transaction€?
    € What is Form 8886, and what are the penalties for failing to file Form 8886?
    € Will I be responsible even if I relied on my tax advisor?
    € What recourse do I have against those that promoted and sold the Sea Nine VEBA?
    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.
    ABOUT THE AUTHOR: Lance Wallach
    Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA's course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications.
    Copyright Lance Wallach, CLU, CHFC
    More information about Lance Wallach, CLU, CHFC
    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

    ReplyDelete
  10. In recent months, 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. To better assist current Sea Nine clients and those that are now or may be under audit in the future, my associates who are CPAs, tax attorneys and former IRS employees will continue to help with the Sea Nine VEBA victims and others in 419 412i captive insurance and section 79 scams and answer the following:
    € What is the IRS's position with respect to the Sea Nine VEBA, 419 captive insurance and section 79 scams?
    € What will be the likely result of my audit?
    € What if I don't agree with my audit results?
    € What are other participants doing with respect to the audits?
    € Will the IRS impose interest and penalties?
    € What is a €listed transaction€?
    € What is Form 8886, and what are the penalties for failing to file Form 8886?
    € Will I be responsible even if I relied on my tax advisor?
    € What recourse do I have against those that promoted and sold the Sea Nine VEBA?
    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.
    ABOUT THE AUTHOR: Lance Wallach
    Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA's course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications.
    Copyright Lance Wallach, CLU, CHFC
    More information about Lance Wallach, CLU, CHFC
    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

    ReplyDelete
  11. Ramesh Sarva Veba
    Defendant Ramesh Sarva is a CPA who has been steering his customers toward VEBA plans for over 20 years- and in particular, toward Sea Nine-administered VEBA plans. He promotes the plans' false benefits while also rebroadcasting the false statements that Elliot and Sea Nine make about the plans they operate and administer. Benistar

    Sarva- More You Should Know
    Sarva has similarly made numerous false statements to his customers about the Sea Nine VEBA plans despite his notice that they are not compliant with Section 419A(f)(6). He touts his many years of work with Sea Nine VEBA plans to potential customers reassuring them that the plans are completely legal. He provides potential plan participants with materials (such as the legal opinions by Elliot and Sea Nine) indicating that after 2004 the Sea Nine plans were not in conformity with the relevant provisions of the Tax Code. And he has promoted the concept that participation in the Sea Nine VEBA plans permits underscoring the cash value nature of the universal or whole life policies that the plans purchase for their participants, even though (noted above) a VEBA plan that operates in this fashion evidences experience rating.
    Posted by Lance Wallach at 1/07/2014 02:05:00 PM
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    Labels: Kae Consulting, Kenneth Elliot, Vista Barranca
    5 comments:

    lance wallachMarch 7, 2014 at 9:13 AM
    Failing to File Form 8886 for VEBAs like Sea Nine VEBA create multiple penalties.

    Taxpayers who participate in 419A(f)(6) multiple employer plans like the Sea Nine VEBA are often very discouraged to find the IRS applying multiple penalties for the failure to file a form that they had no reason to know was required. The form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit plan (or 419 plan). The following example illustrates the penalties that can apply.

    Assume we have an S corporation taxpayer who deducted $100,000 to a multiple employer 419 VEBA for years 2008, 2009 and 2010. The IRS audits the taxpayer and disallows the $100,000 deduction. In most cases, the IRS will provide for the adjustment at the individual 1040 level and other than some interest, the taxpayer will be in a position similar to if the transaction had not occurred. If, however, the taxpayer was not told to file Form 8886 for every year of participation and in fact did not file, the IRS asserts the following additional penalties:

    A $10,000 penalty at the S Corporation level for years 2008 – 2010 for the failure to file Form 8886. Total Penalty = $30,000. See Code Section 6707A.
    A penalty at the individual level of 75% of the tax benefit for years 2008-2010 for the failure to file Form 8886. This translates into a penalty of $26,250 for each year. Total Penalty = $78,750. See Code Section 6707A.
    An accuracy related penalty of 30% of the income tax adjustment for years 2008-2010. The worst part of this penalty is that if the taxpayer exercised due diligence and relied on an outside advisor, this penalty would normally be 20% of the tax and could be waived. However, because the Form 8886 was not filed, the penalty is 30% and cannot be waived. Total Penalty = $31,500. See Code Section 6662A.
    Grand Total of all Penalties = $140,250 (nearly 50% of the total investment)!
    Taxpayers facing these penalties should seek representation with respect to defending their case before the IRS and considering responsibility for the penalty by other parties. Williams Coulson and Michael Lloyd have represented more than 400 taxpayers in audits before the IRS for participation in single and multiple employer 419 plans such as the Sea Nine VEBA, CJA Titanium and Prepare Plans, Cronin 419 and 79 Plans, Professional Benefit Trust ("PBT") and Niche Plans

    ReplyDelete
  12. Ramesh Sarva Veba
    Defendant Ramesh Sarva is a CPA who has been steering his customers toward VEBA plans for over 20 years- and in particular, toward Sea Nine-administered VEBA plans. He promotes the plans' false benefits while also rebroadcasting the false statements that Elliot and Sea Nine make about the plans they operate and administer. Benistar

    Sarva- More You Should Know
    Sarva has similarly made numerous false statements to his customers about the Sea Nine VEBA plans despite his notice that they are not compliant with Section 419A(f)(6). He touts his many years of work with Sea Nine VEBA plans to potential customers reassuring them that the plans are completely legal. He provides potential plan participants with materials (such as the legal opinions by Elliot and Sea Nine) indicating that after 2004 the Sea Nine plans were not in conformity with the relevant provisions of the Tax Code. And he has promoted the concept that participation in the Sea Nine VEBA plans permits underscoring the cash value nature of the universal or whole life policies that the plans purchase for their participants, even though (noted above) a VEBA plan that operates in this fashion evidences experience rating.
    Posted by Lance Wallach at 1/07/2014 02:05:00 PM
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    Labels: Kae Consulting, Kenneth Elliot, Vista Barranca
    5 comments:

    lance wallachMarch 7, 2014 at 9:13 AM
    Failing to File Form 8886 for VEBAs like Sea Nine VEBA create multiple penalties.

    Taxpayers who participate in 419A(f)(6) multiple employer plans like the Sea Nine VEBA are often very discouraged to find the IRS applying multiple penalties for the failure to file a form that they had no reason to know was required. The form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit plan (or 419 plan). The following example illustrates the penalties that can apply.

    Assume we have an S corporation taxpayer who deducted $100,000 to a multiple employer 419 VEBA for years 2008, 2009 and 2010. The IRS audits the taxpayer and disallows the $100,000 deduction. In most cases, the IRS will provide for the adjustment at the individual 1040 level and other than some interest, the taxpayer will be in a position similar to if the transaction had not occurred. If, however, the taxpayer was not told to file Form 8886 for every year of participation and in fact did not file, the IRS asserts the following additional penalties:

    A $10,000 penalty at the S Corporation level for years 2008 – 2010 for the failure to file Form 8886. Total Penalty = $30,000. See Code Section 6707A.
    A penalty at the individual level of 75% of the tax benefit for years 2008-2010 for the failure to file Form 8886. This translates into a penalty of $26,250 for each year. Total Penalty = $78,750. See Code Section 6707A.
    An accuracy related penalty of 30% of the income tax adjustment for years 2008-2010. The worst part of this penalty is that if the taxpayer exercised due diligence and relied on an outside advisor, this penalty would normally be 20% of the tax and could be waived. However, because the Form 8886 was not filed, the penalty is 30% and cannot be waived. Total Penalty = $31,500. See Code Section 6662A.
    Grand Total of all Penalties = $140,250 (nearly 50% of the total investment)!
    Taxpayers facing these penalties should seek representation with respect to defending their case before the IRS and considering responsibility for the penalty by other parties. Williams Coulson and Michael Lloyd have represented more than 400 taxpayers in audits before the IRS for participation in single and multiple employer 419 plans such as the Sea Nine VEBA, CJA Titanium and Prepare Plans, Cronin 419 and 79 Plans, Professional Benefit Trust ("PBT") and Niche Plans

    ReplyDelete

  13. 412i and 419e plans litigation. IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS, Benistar, 412i Lawsuits, 419 lawsuits, IRS Audits, Expert Witness Lance Wallach
    IRS to Audit Sea Nine VEBA Participating Employers
    IRS to Audit Sea Nine VEBA Participating Employers - Finance - Taxes
    Posted by Lance Wallach at 7/08/2014 06:56:00 PM
    Labels: 419 Plan, Lance Wallach, Veba Plan
    2 comments:

    Robert ShermanMarch 9, 2016 at 7:02 AM
    Benistar
    Benistar 419 Plan
    Grist Mill Trust
    Nova,Nutmeg Trust
    Niche
    Sea Nine Veba
    SADI Trust
    Beta 419
    Millennium
    Bisys
    Creative Services Group
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    Compass 419
    Niche 419
    CRESP
    American Benefits Trust
    National Benefit Plan and Trust
    ABT
    Professional Benefits Trust
    Old Mutual
    Allmerica Financial
    American Heritage Life
    Commercial Union Life
    National Life of Vermont
    Old Line Life
    Security Mutual Life
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    ECI Pension Services
    Pension Professionals of America
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    Old Line Life
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    For Help With Any of these contact Lance Wallach or Google Lance Wallach

    ReplyDelete

  14. 412i and 419e plans litigation. IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS, Benistar, 412i Lawsuits, 419 lawsuits, IRS Audits, Expert Witness Lance Wallach
    IRS to Audit Sea Nine VEBA Participating Employers
    IRS to Audit Sea Nine VEBA Participating Employers - Finance - Taxes
    Posted by Lance Wallach at 7/08/2014 06:56:00 PM
    Labels: 419 Plan, Lance Wallach, Veba Plan
    2 comments:

    Robert ShermanMarch 9, 2016 at 7:02 AM
    Benistar
    Benistar 419 Plan
    Grist Mill Trust
    Nova,Nutmeg Trust
    Niche
    Sea Nine Veba
    SADI Trust
    Beta 419
    Millennium
    Bisys
    Creative Services Group
    Sterling Benefit Plan
    Compass 419
    Niche 419
    CRESP
    American Benefits Trust
    National Benefit Plan and Trust
    ABT
    Professional Benefits Trust
    Old Mutual
    Allmerica Financial
    American Heritage Life
    Commercial Union Life
    National Life of Vermont
    Old Line Life
    Security Mutual Life
    West Coast Life
    ECI Pension Services
    Pension Professionals of America
    ABI
    Hartford
    AIG
    Indy Life
    Indianapolis Life
    Advantage
    Jacksom National
    Jefferson-Pilot Life
    Lincoln Benefit Life
    Lincoln National Life
    Manufacturers Life
    Massachusetts Mutual
    Metropolitan Life
    Midland Life
    Minnesota Mutual
    Principal Life
    Reliastar
    Security Mutual
    USG Annuity & Life
    Western Reserve Life Assurance
    Old Mutual
    Allmerica Financial
    American Heritage Life
    Commercial Union Life
    National Life of Vermont
    Old Line Life
    Security Mutual Life
    West Coast Life
    For Help With Any of these contact Lance Wallach or Google Lance Wallach

    ReplyDelete
  15. US Says Benefit Plan Scheme Costs Millions In Taxes
    By Gavin Broady

    Law360, New York (October 11, 2013, 2:38 PM ET) -- The U.S. government sued an insurance program marketer in California federal court Wednesday in an effort to shut down a purported scheme pushing small businesses to buy into employee benefits programs it claims are structured to cheat the government out of millions of dollars in taxes.
    The government’s complaint accuses KAE Insurance Services Inc. and affiliated entities of hawking voluntary employee beneficiary association plans on the misleading promise that the participating businesses can legally write off plan contributions as federal income tax deductions while still recouping the full value of those contributions down the road, according to the complaint.

    The defendants have long been well aware, however, that the plans as structured violate the Internal Revenue Code and regulations promulgated by the U.S. Department of the Treasury, and their activities must be halted via a court injunction, the government argues.

    “Defendants have continued to falsely claim that the VEBA plans in fact comply with the tax laws, and manage and promote them to this day despite their documented knowledge of the illegality of the plans,” the government said. “The result is significant amounts of lost tax revenue to the treasury based on erroneously claimed tax deductions.”

    The complaint alleges that named defendant and California resident Kennet

    ReplyDelete
  16. Sea Nine VEBAs under attack by IRS

    We have received numerous calls from taxpayers who are under audit with the IRS with respect to their participation in the Sea Nine VEBA, a 419A(f)(6) multiple employer welfare benefit plan. The IRS audits are generally managed in one of several upstate New York offices of the IRS. Williams Coulson and Michael Lloyd have represented more than 400 clients in IRS audits in the last three years with respect to participation in 419 plans and more than 200 of those audits were with the New York offices of the IRS.

    ReplyDelete
  17. Sea Nine VEBAs under attack by IRS

    We have received numerous calls from taxpayers who are under audit with the IRS with respect to their participation in the Sea Nine VEBA, a 419A(f)(6) multiple employer welfare benefit plan. The IRS audits are generally managed in one of several upstate New York offices of the IRS. Williams Coulson and Michael Lloyd have represented more than 400 clients in IRS audits in the last three years with respect to participation in 419 plans and more than 200 of those audits were with the New York offices of the IRS.

    ReplyDelete
  18. Attorneys for the United States of America
    16
    17
    18
    19
    UNITED STATES DISTRICT COURT
    CENTRAL DISTRICT OF CALIFORNIA
    WESTERN DIVISION
    20 United States of America,
    21
    ' 22
    Plaintiff,
    vs.
    COMPLAINT FOR PERMANENT
    INJUNCTION AND OTHER
    RELIEF
    23 Kenneth Elliott d/b/a KAE Insurance Service~ Inc., Vista Barranca, Inc.,
    24 and KA~ Consulting· Sea Nine
    Associates, Inc., and Ramesh Sarva,
    25
    26
    27
    28
    Defendants.

    ReplyDelete
  19. Attorneys for the United States of America
    16
    17
    18
    19
    UNITED STATES DISTRICT COURT
    CENTRAL DISTRICT OF CALIFORNIA
    WESTERN DIVISION
    20 United States of America,
    21
    ' 22
    Plaintiff,
    vs.
    COMPLAINT FOR PERMANENT
    INJUNCTION AND OTHER
    RELIEF
    23 Kenneth Elliott d/b/a KAE Insurance Service~ Inc., Vista Barranca, Inc.,
    24 and KA~ Consulting· Sea Nine
    Associates, Inc., and Ramesh Sarva,
    25
    26
    27
    28
    Defendants.

    ReplyDelete
  20. Ramesh Sarva Veba
    Defendant Ramesh Sarva is a CPA who has been steering his customers toward VEBA plans for over 20 years- and in particular, toward Sea Nine-administered VEBA plans. He promotes the plans' false benefits while also rebroadcasting the false statements that Elliot and Sea Nine make about the plans they operate and administer.

    ReplyDelete
  21. Ramesh Sarva Veba
    Defendant Ramesh Sarva is a CPA who has been steering his customers toward VEBA plans for over 20 years- and in particular, toward Sea Nine-administered VEBA plans. He promotes the plans' false benefits while also rebroadcasting the false statements that Elliot and Sea Nine make about the plans they operate and administer.

    ReplyDelete
  22. Kenneth Elliot KAE Insurance Co
    419 Plan, 412i plan, Captive Insurance Plan, Section 79 Plan, Benistar

    Tuesday, January 7, 2014
    Sea Nine VEBA Important
    As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For those taxpayers alone , the IRS assessed a total of $4,852,106in additional taxes, or an average additional tax of $404,342 per audit. Because Sarva has acknowledged directing atleast 40 of his customers to Sea Nine , the total amount of harm to the Treasury he has caused through promotion of improper VEBA plans is likely almost four times higher.

    ReplyDelete
  23. Kenneth Elliot KAE Insurance Co
    419 Plan, 412i plan, Captive Insurance Plan, Section 79 Plan, Benistar

    Tuesday, January 7, 2014
    Sea Nine VEBA Important
    As of August 23,2013, the IRS has closed audits of 12 Sea Nine VEBA plan-participating taxpayers who were referred to Sea Nine by Sarva. For those taxpayers alone , the IRS assessed a total of $4,852,106in additional taxes, or an average additional tax of $404,342 per audit. Because Sarva has acknowledged directing atleast 40 of his customers to Sea Nine , the total amount of harm to the Treasury he has caused through promotion of improper VEBA plans is likely almost four times higher.

    ReplyDelete
  24. IRS audits sea nine veba, ken elliot and ramesh sarva sued.
    Published on February 11, 2016
    LikedUnlikeIRS audits sea nine veba, ken elliot and ramesh sarva sued.1Comment14ShareShare IRS audits sea nine veba, ken elliot and ramesh sarva sued.7
    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    CPA Ramesh Sarva and Kenneth Elliot led Tax Fairy seekers to Section 419, which provides for VEBAs — “Voluntary Employee Beneficiary Association” plans. Properly operated, VEBAs enable employers to make deductible contributions to a plan that buys insurance for employees.

    A company associated with Mr. Sarva and Mr. Elliot, Sea Nine, told employers that they could use VEBAs to get around the tax law rules against deducting most life insurance premiums. Their customers deducted contributions to VEBAs and used them to buy whole-life insurance policies with high cash value accumulation on the business owners’ lives. The owners then borrowed the cash values. The purported result was a deduction, followed by tax-free access to the deducted cash via borrowing cash values.

    Tax Fairy guides can always find willing customers: “…small business owners with high net worth (often doctors with small but lucrative medical practices),” according to the IRScomplaint. It has not gone well for the Tax Fairy adherents:

    Sarva has successfully marketed at least 33 separate VEBAs plans to a variety of small business owners. All of these participants have been or are currently being audited by the IRS. 13 of these participant audits have been completed and have resulted in total tax adjustments of $3,500,519.
    In other words, it doesn’t work. The IRS warned people off of such plans as early as 1995, and the scheme was firmly shot down by a U.S. Court of Appeals in 2002 in the Neonatology Assoc. P.A. case. In fact, Neonatology was a Sea Nine client. Undaunted, Sea Nine kept selling the idea, selling the plans through “a network of affiliated third parties” including “independent certified publica accountants (“CPA”) and financial planners.” At least they did until yesterday, when they consented to a permanent injunction yesterday against further Tax Fairy hunts.

    Sea Nine had clients all over the place; the complaint lists clients in California, Florida, Alabama, and Hawaii, all with big IRS exam adjustments.

    LikedUnlikeIRS audits sea nine veba, ken elliot and ramesh sarva sued.CommentShareShare IRS audits sea nine veba, ken elliot and ramesh sarva sued.
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    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    346 posts
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  25. IRS audits sea nine veba, ken elliot and ramesh sarva sued.
    Published on February 11, 2016
    LikedUnlikeIRS audits sea nine veba, ken elliot and ramesh sarva sued.1Comment14ShareShare IRS audits sea nine veba, ken elliot and ramesh sarva sued.7
    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    CPA Ramesh Sarva and Kenneth Elliot led Tax Fairy seekers to Section 419, which provides for VEBAs — “Voluntary Employee Beneficiary Association” plans. Properly operated, VEBAs enable employers to make deductible contributions to a plan that buys insurance for employees.

    A company associated with Mr. Sarva and Mr. Elliot, Sea Nine, told employers that they could use VEBAs to get around the tax law rules against deducting most life insurance premiums. Their customers deducted contributions to VEBAs and used them to buy whole-life insurance policies with high cash value accumulation on the business owners’ lives. The owners then borrowed the cash values. The purported result was a deduction, followed by tax-free access to the deducted cash via borrowing cash values.

    Tax Fairy guides can always find willing customers: “…small business owners with high net worth (often doctors with small but lucrative medical practices),” according to the IRScomplaint. It has not gone well for the Tax Fairy adherents:

    Sarva has successfully marketed at least 33 separate VEBAs plans to a variety of small business owners. All of these participants have been or are currently being audited by the IRS. 13 of these participant audits have been completed and have resulted in total tax adjustments of $3,500,519.
    In other words, it doesn’t work. The IRS warned people off of such plans as early as 1995, and the scheme was firmly shot down by a U.S. Court of Appeals in 2002 in the Neonatology Assoc. P.A. case. In fact, Neonatology was a Sea Nine client. Undaunted, Sea Nine kept selling the idea, selling the plans through “a network of affiliated third parties” including “independent certified publica accountants (“CPA”) and financial planners.” At least they did until yesterday, when they consented to a permanent injunction yesterday against further Tax Fairy hunts.

    Sea Nine had clients all over the place; the complaint lists clients in California, Florida, Alabama, and Hawaii, all with big IRS exam adjustments.

    LikedUnlikeIRS audits sea nine veba, ken elliot and ramesh sarva sued.CommentShareShare IRS audits sea nine veba, ken elliot and ramesh sarva sued.
    Report this
    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    346 posts
    14 commentsRecommended



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  26. Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes
    Edit article
    Published on January 4, 2017
    LikedUnlikeFailing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes1Comment0ShareShare Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes2
    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties.

    Taxpayers who participate in 419A(f)(6) multiple employer plans like the Sea Nine VEBA are often very discouraged to find the IRS applying multiple penalties for the failure to file a form that they had no reason to know was required. The form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit plan (or 419 plan). The following example illustrates the penalties that can apply.

    Assume we have an S corporation taxpayer who deducted $100,000 to a multiple employer 419 VEBA for years 2008, 2009 and 2010. The IRS audits the taxpayer and disallows the $100,000 deduction. In most cases, the IRS will provide for the adjustment at the individual 1040 level and other than some interest, the taxpayer will be in a position similar to if the transaction had not occurred. If, however, the taxpayer was not told to file Form 8886 for every year of participation and in fact did not file, the IRS asserts the following additional penalties:

    A $10,000 penalty at the S Corporation level for years 2008 – 2010 for the failure to file Form 8886. Total Penalty = $30,000. See Code Section 6707A.
    A penalty at the individual level of 75% of the tax benefit for years 2008-2010 for the failure to file Form 8886. This translates into a penalty of $26,250 for each year. Total Penalty = $78,750. See Code Section 6707A.
    An accuracy related penalty of 30% of the income tax adjustment for years 2008-2010. The worst part of this penalty is that if the taxpayer exercised due diligence and relied on an outside advisor, this penalty would normally be 20% of the tax and could be waived. However, because the Form 8886 was not filed, the penalty is 30% and cannot be waived. Total Penalty = $31,500. See Code Section 6662A.
    Grand Total of all Penalties = $140,250 (nearly 50% of the total investment)!

    ReplyDelete
  27. Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes
    Edit article
    Published on January 4, 2017
    LikedUnlikeFailing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes1Comment0ShareShare Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes2
    Lance Wallach
    Lance Wallach
    Business Owner at National Offices of Lance Wallach
    Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties.

    Taxpayers who participate in 419A(f)(6) multiple employer plans like the Sea Nine VEBA are often very discouraged to find the IRS applying multiple penalties for the failure to file a form that they had no reason to know was required. The form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit plan (or 419 plan). The following example illustrates the penalties that can apply.

    Assume we have an S corporation taxpayer who deducted $100,000 to a multiple employer 419 VEBA for years 2008, 2009 and 2010. The IRS audits the taxpayer and disallows the $100,000 deduction. In most cases, the IRS will provide for the adjustment at the individual 1040 level and other than some interest, the taxpayer will be in a position similar to if the transaction had not occurred. If, however, the taxpayer was not told to file Form 8886 for every year of participation and in fact did not file, the IRS asserts the following additional penalties:

    A $10,000 penalty at the S Corporation level for years 2008 – 2010 for the failure to file Form 8886. Total Penalty = $30,000. See Code Section 6707A.
    A penalty at the individual level of 75% of the tax benefit for years 2008-2010 for the failure to file Form 8886. This translates into a penalty of $26,250 for each year. Total Penalty = $78,750. See Code Section 6707A.
    An accuracy related penalty of 30% of the income tax adjustment for years 2008-2010. The worst part of this penalty is that if the taxpayer exercised due diligence and relied on an outside advisor, this penalty would normally be 20% of the tax and could be waived. However, because the Form 8886 was not filed, the penalty is 30% and cannot be waived. Total Penalty = $31,500. See Code Section 6662A.
    Grand Total of all Penalties = $140,250 (nearly 50% of the total investment)!

    ReplyDelete
  28. Keep burning bright and let your light illuminate the world around you. Just don't forget that with light comes shadow.

    ReplyDelete
  29. Failing to File Form 8886 for VEBAs like Sea Nine VEBA, or any 419,section 79 or small captive,create multiple penalties, 5499 views, 69 likes
    Published on January 4, 2017
    LikeFailing to File Form 8886 for VEBAs like Sea Nine VE

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  30. 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)).

    ReplyDelete
  31. 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)).

    ReplyDelete
  32. 419 welfare benifit plan, get your money back, 2433 views, 21 likes
    Published on Published onDecember 29, 2017
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    Lance Wallach
    Lance Wallach
    Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker
    729 articles
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    The Internal Revenue Service and the Treasury Department cautioned taxpayers about participating in certain trust arrangements being sold to professional corporations and other small businesses as welfare benefit funds and identified some of the arrangements as listed transactions.

    There are many legitimate welfare benefit funds that provide benefits, such as health insurance and life insurance, to employees and retirees. However, the arrangements the IRS is cautioning employers about primarily benefit the owners or other key employees of businesses, sometimes in the form of distributions of cash, loans, or life insurance policies.

    “The guidance targets specific abuses involving a limited group of arrangements that claim to be welfare benefit funds,” said Donald L. Korb, Chief Counsel for the IRS. “Today’s action sends a strong signal that these abusive schemes must stop.”

    The guidance explains that, depending on the facts and circumstances, a particular arrangement could be providing dividends to the owners of a business that are includible in the owners’ income and not deductible by the business. The arrangement could also be a plan of nonqualified deferred compensation. Even some arrangements providing welfare benefits may have tax consequences different than what is claimed.

    In Notice 2007-83, the IRS identified certain trust arrangements involving cash value life insurance policies, and substantially similar arrangements, as listed transactions. If a transaction is designated as a listed transaction, affected persons have disclosure obligations and may be subject to applicable penalties. Taxpayers who otherwise would be required to file a disclosure statement prior to Jan. 15, 2008, as a result of Notice 2007-83 have until Jan. 15, 2008, to make the disclosure.

    In Notice 2007-84, the IRS cautioned taxpayers that the tax treatment of trusts that, in form, provide post-retirement medical and life insurance benefits to owners and other key employees may vary from the treatment claimed. The IRS may issue further guidance to address these arrangements, and taxpayers should not assume that the guidance will be applied prospectively only.

    Today, the IRS also issued related Revenue Ruling 2007-65 to address situations where an arrangement is considered a welfare benefit fund but the employer’s deduction for its contributions to the fund is denied in whole or part for premiums paid by the trust on cash value life insurance policies.

    Related Items:

    Revenue Ruling 2007-65

    Notice 2007-83

    Notice 2007-84

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