RAMESH SARVA: United States Of America, ...: United States Of America, Oct. 9th 2013 Plantiff, g their customers to falsely claim tax deductions to which they ar
2 not entitled.
3
4 JURISDICTION AND VENUE
5 7. This Court has jurisdiction under 28 U.S.C. §§ 1340 and 1345, an
6 I.R.C. §§ 7402(a).
7 8. This action for injunctive relief is brought at the request of the Chie
· 8 Counsel of the Internal Revenue Service, a delegate of the Secretary of th
9 Treasury, and commenced at the direction of a delegate of the Attorney General o
10 the United States, pursuant to I.R.C. §§ 7402 and 7408.
11 9. Venue is proper in this Court under 28 U.S.C. § 1391(b) because
12 substantial part of the events giving rise to this suit took place in this district. Th
13 Court has personal jurisdiction over all named defendants, including those no
14 domiciled in this jurisdiction, because the claims asserted against them arise out o
15 events that took place in this district, and because it was foreseeable they would b
;L6 sued in this district.
17
is THE PARTIES
19 10. Defendant Elliott is a resident of Rancho Santa Margarita, California.
20 Besides his employment with Sea Nine, Elliott conducts business relevant to th
i1 claims in this lawsuit through a variety of entities that he set up for administrativ
22 purposes (e.g. to enable him to separate income streams he derives for the differen
23 kinds of work and services he generally provides through Sea Nine) .
.24 11. Defendant Sea Nine is a Nevada corporation founded by Stephe
'25 Ross. After Ross's death in 2000, ownership and formal control of Sea Nine passe
26 to his widow, Sylvia Ross Calhoun. Elliott (via a management contract betwee
27
28
4
10296991.1 ...
419 welfare benifit plan, get your money back, 2433 views, 21 likes
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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
419 welfare benifit plan, get your money back, 2433 views, 21 likes
ReplyDeletePublished on Published onDecember 29, 2017
Edit article
View stats
Lance Wallach
Lance Wallach
Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker
729 articles
Like 0
Comment
0
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