Tuesday, July 15, 2014 Abusive Tax Shelters: Section 79 & 419 Plans Litigation: Section 79 Plans Most people have neve... Abusive Tax Shelters: Section 79 & 419 Plans Litigation: Section 79 Plans Most people have neve... Posted by lance wallach at 1:07 PM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
1 comment:
lance wallachJuly 15, 2014 at 1:08 PM
Lance Wallach October 16, 2012 · Section 79, captive insurance, 412i, 419, audits, problems and lawsuits April 24, 2012 By Lance Wallach, CLU, CHFC
Captive insurance, section 79, 419 and 412i problems WebCPA
The dangers of being "listed" A warning for 419, 412i, Sec.79 and captive insurance Accounting Today: October 25, By: Lance Wallach Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in big trouble. In recent years, the IRS has identified many of these arrangements as abusive devices to funnel tax deductible dollars to shareholders and classified these arrangements as "listed transactions." These plans were sold by insurance agents, financial planners, accountants and attorneys seeking large life insurance commissions. In general, taxpayers who engage in a "listed transaction" must report such transaction to the IRS on Form 8886 every year that they "participate" in the transaction, and you do not necessarily have to make a contribution or claim a tax deduction to participate. Section 6707A of the Code imposes severe penalties ($200,000 for a business and $100,000 for an individual) for failure to file Form 8886 with respect to a listed transaction. But you are also in trouble if you file incorrectly. I have received numerous phone calls from business owners who filed and still got fined. No
ReplyDeleteTuesday, July 15, 2014
Abusive Tax Shelters: Section 79 & 419 Plans Litigation: Section 79 Plans Most people have neve...
Abusive Tax Shelters: Section 79 & 419 Plans Litigation: Section 79 Plans Most people have neve...
Posted by lance wallach at 1:07 PM
Email This
BlogThis!
Share to Twitter
Share to Facebook
Share to Pinterest
1 comment:
lance wallachJuly 15, 2014 at 1:08 PM
Lance Wallach
October 16, 2012 ·
Section 79, captive insurance, 412i, 419, audits, problems and lawsuits
April 24, 2012 By Lance Wallach, CLU, CHFC
Captive insurance, section 79, 419 and 412i problems
WebCPA
The dangers of being "listed"
A warning for 419, 412i, Sec.79 and captive insurance
Accounting Today: October 25,
By: Lance Wallach
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in
big trouble.
In recent years, the IRS has identified many of these arrangements as abusive devices to
funnel tax deductible dollars to shareholders and classified these arrangements as "listed
transactions."
These plans were sold by insurance agents, financial planners, accountants and attorneys
seeking large life insurance commissions. In general, taxpayers who engage in a "listed
transaction" must report such transaction to the IRS on Form 8886 every year that they
"participate" in the transaction, and you do not necessarily have to make a contribution or
claim a tax deduction to participate. Section 6707A of the Code imposes severe penalties
($200,000 for a business and $100,000 for an individual) for failure to file Form 8886 with
respect to a listed transaction.
But you are also in trouble if you file incorrectly.
I have received numerous phone calls from business owners who filed and still got fined. No