Wednesday, January 23, 2013 Want To Get Audited, Here Is One Way.
Lance Wallach
One day your accountant suggested that she knew a life insurance agent who could help you with your taxes. You met with him, you listened to his pitch about a pension plan, and you asked a lot of questions. He suggested a 412iplan, whatever that is. From the initial description it sounded as if you would have to fund retirement for your rotating staff, which you weren’t interested in doing, but he told you that he could arrange an executive, carve out. You’ve been hearing that the IRS is after “listed transactions” and you’re worried. Suddenly you’re having a tough time the insurance agent that sold you the plan return your calls. The insurance company whose products fund your plan has taken your calls, but for the fourth time in as many months an agent has promised to get back to you. You have gone to a new accountant and you learn that the plan was unsuited for you, it was formed improperly, and it’s going to cost you a lot more money than you have to pay the IRS not to mention the accountant and the actuary to sort it all out. Now you are worried that the problems may wipe out your retirement nest egg and keep you working years longer than you intended. Fortunately, there are ways to provide for your retirement that can afford you tax benefits while creating a solid retirement fund for your future so that you won’t have to be “that doctor”. However, getting there doesn’t necessarily start with cousin Tilly’s insurance agent friend or the “financial planner” you met on the golf course. If you want to avoid problems in your retirement plans, there are some things you should do. Be careful. Don’t be “that professional” whose retirement assets are wiped out because of cousin Tilly’s friend. But if you are “that professional”, then make sure you protect yourself. You put yourself in the hands of others to properly protect you and to make sure that the 412i plan, the 419 plan, captive insurance or the section 79 scam that they recommended to you were appropriate and properly set up. When they fail, they need to pay to solve the problems they caused.
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. For more information and additional articles on these subjects, visit www.vebaplan.com, www.taxlibrary.us, lawyer4audits.com or call 516-938-5007.
The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
Posted by Lance Wallach at 11:06 AM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
lance wallachJuly 10, 2014 at 9:30 AM Expert Witness Directorynsurance companies; and their agand that the premiums, which dwarfed any payout to a beneficiary, violated incidental death benefit rules.
Under §6707A of the Internal Revenue Code, once the IRS flags something as an abusive tax shelter, or "listed transaction," penalties are imposed per year for each failure to disclose it. Another allegation is that businesses weren't told that they had to file Form 8886, which discloses a listed transaction.
According to Lance Wallach of Plainview, N.Y. (516-938-5007), who testifies as an expert in cases involving the plans, the vast majority of accountants either did not file the forms for their clients or
Wednesday, January 23, 2013
ReplyDeleteWant To Get Audited, Here Is One Way.
Lance Wallach
One day your accountant suggested that she knew a life insurance agent who could help you with your taxes. You met with him, you listened to his pitch about a pension plan, and you asked a lot of questions. He suggested a 412iplan, whatever that is. From the initial description it sounded as if you would have to fund retirement for your rotating staff, which you weren’t interested in doing, but he told you that he could arrange an executive, carve out.
You’ve been hearing that the IRS is after “listed transactions” and you’re worried. Suddenly you’re having a tough time the insurance agent that sold you the plan return your calls. The insurance company whose products fund your plan has taken your calls, but for the fourth time in as many months an agent has promised to get back to you.
You have gone to a new accountant and you learn that the plan was unsuited for you, it was formed improperly, and it’s going to cost you a lot more money than you have to pay the IRS not to mention the accountant and the actuary to sort it all out. Now you are worried that the problems may wipe out your retirement nest egg and keep you working years longer than you intended.
Fortunately, there are ways to provide for your retirement that can afford you tax benefits while creating a solid retirement fund for your future so that you won’t have to be “that doctor”. However, getting there doesn’t necessarily start with cousin Tilly’s insurance agent friend or the “financial planner” you met on the golf course. If you want to avoid problems in your retirement plans, there are some things you should do.
Be careful. Don’t be “that professional” whose retirement assets are wiped out because of cousin Tilly’s friend. But if you are “that professional”, then make sure you protect yourself. You put yourself in the hands of others to properly protect you and to make sure that the 412i plan, the 419 plan, captive insurance or the section 79 scam that they recommended to you were appropriate and properly set up. When they fail, they need to pay to solve the problems they caused.
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. For more information and additional articles on these subjects, visit www.vebaplan.com, www.taxlibrary.us, lawyer4audits.com or call 516-938-5007.
The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
Posted by Lance Wallach at 11:06 AM
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Labels: 419, 419E, abusive tax shelters, captive insurance, Listed Transactions, section 79
1 comment:
lance wallachJuly 10, 2014 at 9:30 AM
Expert Witness Directorynsurance companies; and their agand that the premiums, which dwarfed any payout to a beneficiary, violated incidental death benefit rules.
Under §6707A of the Internal Revenue Code, once the IRS flags something as an abusive tax shelter, or "listed transaction," penalties are imposed per year for each failure to disclose it. Another allegation is that businesses weren't told that they had to file Form 8886, which discloses a listed transaction.
According to Lance Wallach of Plainview, N.Y. (516-938-5007), who testifies as an expert in cases involving the plans, the vast majority of accountants either did not file the forms for their clients or