6707A Penalties & 419 Plans Litigation 412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Friday, March 30, 2012
Court CaseSea Nine Veba As an expert witness in this case the claims against Lance Wallach’s client was dismissed. Lance Wallach’s side has never lost a case.
J&M ASSOCIATES, INC. v. CALLAHAN J&M ASSOCIATES, INC., Plaintiff, v. MARK C. CALLAHAN, d/b/a CALLAHAN FINANCIAL SOLUTIONS, et. al., Defendants, Civil Action No. 07-0883-CG-C. United States District Court, S.D. Alabama, Southern Division. November 12, 2010.
ORDER
CALLIE V. S. GRANADE, District Judge.
On December 21, 2007, J&M Associates Inc. ("J&M") brought a lawsuit against Mark C. Callahan d/b/a Callahan Financial Solutions, Lalat Pattanaik d/b/a I.P.S. Private Advisors, Brady Richardson d/b/a Richardson Consultants, J. Michael Mangawang, Fredrick A. Romero, and American General Life Insurance Company ("AIG") alleging breach of contract, negligence, w
Lance Wallach - The Nation's Foremost 419 and 412i plans expert www.lancewallach.com/ Lance Wallach is the nation's foremost expert on 419 plans,412i plans,listed transactions,reportable transactions,Section 79 plans, captive insurance plans, ... Lance Wallach shared this on Google+ Captive Insurance & 419 Plans Litigation
lancewallachchfc.blogspot.com/ by Lance Wallach - in 60 Google+ circles Mar 28, 2014 - Reportable Transactions .com: IRS Audits 419, 412i, Captive Insurance Plans With...: By Lance Wallach June 2011 The IRS started aud. You've visited this page many times. Last visit: 4/4/14 Lance Wallach | LinkedIn www.linkedin.com/in/lancewallach Greater New York City Area - director at taxaudit419.com View Lance Wallach's professional profile on LinkedIn. LinkedIn is the world's largest business network, helping professionals like Lance Wallach discover ... Lance Wallach shared this on Google+ Lance Wallach | Facebook https://www.facebook.com/lance.wallach Lance Wallach is on Facebook. Join Facebook to connect with Lance Wallach and others you may know. Facebook gives people the power to share and makes ... You shared this on Google+ Lance Wallach (LanceWallach) on Twitter https://twitter.com/LanceWallach The latest from Lance Wallach (@LanceWallach). Defending businesses & financial professionals from IRS audits, insurance & bro
Section 79 & 419 Plans Litigation: Protecting Clients from Fraud, Incompetence and Sc... Section 79 & 419 Plans Litigation: Protecting Clients from Fraud, Incompetence and Sc...: Lance Wallach Nov 12 Parts of this article are from the book published by John Wiley and Sons, Protecting Clients from Fraud, Incompete...412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
User:Lance Wallach From TaxAlmanac, A Free Online Resource for Tax Professionals Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms. Speaker at more than 70 conventions yearly, including the annual national conventions of the American Association of Attorney Certified Public Accountants, National Society of Accountants, National Network of Estate Planning Attorneys, National Association of Tax Practitioners, National Association of Enrolled Agents, National Association of Health Underwriters, American Society of Pension Actuaries, Employee Benefits Expo, Health Insurance Underwriters, NAPFA, NAIFA, FPA, NABA, ALPFA, various state CPA societies, Tax Institutes, as well as medical and insurance conventions, before CLU Societies, CPA/Law Forums throughout the United States, and Estate Planning seminars. Lance Wallach, a member of the AICPA faculty of teaching professionals and an AICPA course developer, is a frequent and popular speaker on Circular 230 and abusive retirement and welfare benefit plans, financial and estate planning, reducing health insurance costs, and tax-oriented strategies at accounting and financial planning conventions. He has authored numerous books including "The Team Approach to Tax, Financial and Estate Planning by the AICPA and Wealth Preservation Planning by the National Society of Accountants". His newest books "CPAs’ Guide to Life Insurance", and "CPAs’ Guide to Federal and Estate Gift Taxation" will be published this spring by Bisk CPEasy. Mr. Wallach writes for over fifty publications including AICPA Planner, Accounting Today, CPA Journal, Enrolled Agents Journal, Financial Planning, Registered Representative, Tax Practitioners Journal, CPA/Law Forum, Employee Benefit News, Health Underwriter, Advisor and the American Medical Association News. Mr. Wallach teaches accountants how to increase their clientele. Mr. Wallach is listed in Who’s Who in Finance and Industry and has been featured on television and radio financial talk shows. Ph# 516-938-5007 e-mail: lanwalla@aol.com Web: [1]
412i 419E IRS Audits and Problems 412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS. Tuesday, January 3, 2012
No Shelter Here, Backlash on too-good-to-be-true insurance plan Remodeling Hanley / Wood September 2011
By: Lance Wallach
During the past few years, the Internal Revenue Service (IRS) has fined many business owners hundreds of thousands of dollars for participating in several particular types of insurance plans. The 412(i), 419, captive insurance, and section 79 plans were marketed as a way for small-business owners to set up retirement, welfare benefit plans, or other tax-deductible programs while leveraging huge tax savings, but the IRS put most of them on a list of abusive tax shelters, listed transactions, or similar transactions, etc., and has more recently focused audits on them. Many accountants are unaware of the issues surrounding these plans, and many big-name insurance companies are still encouraging participation in them. Seems Attractive The plans are costly up-front, but your money builds over time, and there’s a large payout if the money is removed before death. While many business owners have retirement plans, they also must care for their employees. With one of these plans, business owners are not required to give their workers anything. Gotcha Although small business has taken a recessionary hit and owners may not be spending big sums on insurance now, an IRS task force is auditing people who bought these as early as 2004. There is no statute of limitations. The IRS also requires participants to file Form 8886 informing the IRS of participation in this “abusive transaction.” Failure to file or to file incorrectly will cost the business owner interest and penalties. Plus, you’ll pay back whatever you claimed for a deduction, and there are additional fines — possibly 70% of the tax benefit you claim in a year. And, if your accountant does not confidentially inform on you, he or she will get fined $100,000 by the IRS. Further, the IRS can freeze assets if you don’t pay and can fine you on a corporate and a pers
Tuesday, July 9, 2013 complex scams involving life insurance policies There are a lot of complex scams involving life insurance policies. What looks like a good idea on paper may leave you with fewer assets and less protection, while lining the pockets of salesmen and insurance brokers. Many people are convinced to sell their current life insurance policy in order to pay the premium needed to "upgrade" their policy. All the money you have lost goes straight to the agent, while your new policy may even cost you more and protect you less.
If you believe that you have been the victim of life insurance sales fraud, we can help you evaluate your claim and explore your options. With considerable experience handling long-term disability and life insurance coverage claims, Lance Wallach wrote the book on insurance that others read for CPE credit. Posted by Lance Wallach at 9:04 AM 1 comment: Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
Labels: CPE credit, life insurance coverage, long-term disability Tuesday, July 2, 2013 National Association of Insurance Commissioners Jim Donelon, the president of the National Association of Insurance Commissioners, questioned the need for a countrywide halt on approvals of captive insurance deals one day after New York’s regulator said the transactions hide risk.
“Frankly, at this point in time, I don’t see an obvious need for such a moratorium,” Donelon said today on a conference call held by the NAIC. MetLife Inc. (MET) and Prudential Financial Inc. (PRU), the largest U.S. life insurers, are among companies that use subsidiaries known as captives to transfer risk and increase financial flexibility. Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, said in a report yesterday that other states are allowing captives to use riskier collateral in a “regulatory race to the bottom.” “The fact that certain insurers are inappropriately using shell games to hide risk and loosen reserve requirements is greatly troubling,” Lawsky said in the report. “Shadow insurance allows companies to divert reserves for other purposes besides paying policyholder claims.” Donelon said NAIC members already have a group reviewing captives and that state regulators support improved transparency on the deals. “We are doing what we need to do in a thoughtful, deliberative way,” Donelon said on the call. He said that the NAIC weighs standards rather than imposing regulations and that“one of those standards could be to implement what I consider a knee-jerk position of issuance of moratorium before the house is on fire.” I do not agree with this.
Contact Information Email : Lanwalla@aol.com Phone : 516-983-5007 Address : Lance Wallach www.TaxAudit419.com www.Vebaplan.org IRS Form 8938 FATCA requires any U.S. person holding foreign financial assets with an aggregate value exceeding $50,000 to report certain information about those assets on a new form (Form 8938) that must be attached to the taxpayer’s annual tax return. Reporting applies for assets held in taxable years beginning on or after January 1, 2011. Failure to report foreign financial assets on Form 8938 will result in a penalty of $10,000 (and a penalty up to $50,000 for continued failure after IRS notification). Further, underpayments of tax attributable to non-disclosed foreign financial assets will be subject to an additional substantial understatement penalty of 40 percent. Under FATCA, U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on a new form attached to their tax return. Penalties apply for failure to comply with this new reporting requirement. Reporting is required for assets held in taxable years beginning on or after January 1
As an expert witness Lance Wallach side has never lost a case
MONDAY, APRIL 21, 2014 Lance Wallach Lance Wallach
An organization to help those harmed by the IRS, don't let what happened to Bruce happen to you Posted by Lance Wallach at 4:57 AM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
Lance WallachApril 25, 2014 at 11:10 AM Lance Wallach Wrote the Book
New and Bestselling AICPA CPE Self-Study Courses At the AICPA Store you'll find more than 200 titles in a variety of formats to best meet your needs. Get practical guidance. Stay up-to-date on hot topics. Train your staff. Meet CPE reporting deadlines. Get real-time exam results with online grading. Check out this month's picks below. Turn to the AICPA for quality, value and convenience in CPE self-study products. Order today.
Author/Moderator: Lance Wallach, CLU, CHFC, CIMC Publisher: AICPA Availability: In Stock Chapter 1 - Planning for Business Owners Learning Objectives
Lance Wallach Managing Director Specializing in the following services:
"IRS audit appeals" U.S. 'Tax Court' cases Multinational taxation consulting 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: IRS Taxes Insurance & retirement plan cases The Offices of Lance Wallach 516-938-5007 Vebaplan.org "America's leading tax representation firm."(TM) Serving clients nationwide
Call us today:
516-938-5007
Email us at:
LanWalla@aol.com
The Lance Wallach Network
TaxAudit419.com ReportableTransactions Listed Transactions IRS6707Apenalty IRSform8886 TaxAdvisorExperts ExpertTaxAdvisors Taxlibrary.us 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. Every one of our consulting attorneys, CPAs & ex IRS Agents
Abusive Tax Shelters 412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Tuesday, April 19, 2011
Lance Wallach tells national radio audience how IRS can collect billions by eliminating its bureaucracy & incompetence & going after the real culprits Click hear to listen to the radio interview on this subject.
Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. 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 has never lost a case. Mr. Wallach may be reached at 516/938.5007, wallachinc@gmail.com, or at www.taxaudit419.com or www.lancewallach.com.
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 12:10 PM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
Lance WallachOctober 25, 2013 at 9:38 AM Dolan Media Newswires 01/22/2010
Small business retirement plans fuel litigation Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are filing lawsuits against thos Lance Wallach can be reached at: LaWallach@aol.com- 516-938-5007- or www.vebaplan.com
ReplyDelete
Lance WallachMarch 4, 2014 at 8:43 AM Tuesday, April 19, 2011
Participated in a Sea Nine VEBA plan_Contact Lance Wallach
Wednesday, January 8, 2014
IRS Put 419 Plans and VEBA Plans on Top of its Hit List There are some administrators still promoting 419 plans. It defies logic to me that sales people will sell something they know or should know will not hold up under IRS scrutiny just so they can sell cash value life insurance. Most of the rest of the 419 sales people are now selling captive insurance and section 79 scams that the IRS is just starting to audit. But badk to the 419 plan.Back in the day (1996–2000), 419 welfare benefit plans used to be all the rage as a way for profitable business owners to reduce their taxes and build a tax-favorable nest egg under the cover of an “employee benefit plan.”
With an ambiguous tax code and some favorable tax court rulings, promoters of WPBs became emboldened and far too high profile in the late 1990s. This was amplified by the life insurance industry's internal marketing of WBPs because they were funded mainly with cash value life insurance.
Without fully explaining how these plans worked, I will simply state that an employer could try to take deductions of $25,000–$300,000+ where all of the money would go into a WBP and into a CVL insurance policy where it could grow tax free for years.
Depending on how aggressive the third-party administrator of these plans were, clients were told the money would either come out and be taxable when in retirement while some administrators even touted that business owners could get the money out tax free (which in my opinion was total nonsense, but that’s how they were sold).
The IRS steps in
Because of the aggressive marketing of these plans, the IRS put it on the top of its hit list. 419A(f)5 and A(f)6 plans, 419(e)3 plans as well as VEBA plans (which are also WPBs) all got hammered by the IRS in 2007 when it issued three revenue rulings. WBPs were also put on the tax transaction list.
U.S. Attorney goes after 419 plan promoter
One 419 plan promoter who has been around since the 1990s just had a complaint filed against him, his spouse and several related companies. It’s a 43-page complaint with request for a permanent injunction barring him and several companies from dealing with these plans. To read the complaint, click on the following link: Be careful if it seems to good to be true. Be careful if an insurance agent, or worse, your accountant is pushing a captive insurance of section
Government Seeks Permanent Injunction Against Sea Nine Promoters
On October 9, 2013, United States Attorneys for the Central District of California and the United States Department of Justice filed a complaint seeking to permanently enjoin Kenneth Elliott, Sea Nine Associates, and others from promoting participation in, or managing, voluntary employee beneficiary association (“VEBA”) plans. According to the government, the defendants promoted “a scheme in which [the defendants] sell to customers owning small, often closely-held companies, participation in VEBA plans … and claim that customers can, through the contributions their businesses make to VEBA plan administered or operated by the Defendants, fund for their employees (and more often than not themselves) a valuable insurance-oriented welfare benefit while claiming all of the VEBA contributions as a federal income tax deduction.” The government further alleges that the defendants “have continuted 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.”
According to the complaint, Defendant Kenneth Elliott has admitted that there are over 200 participants in Sea Nine VEBA plans. The government claims that it has completed audits of 41 taxpayers and, in those audits, it has assessed nearly $13.875 million in tax deficiencies. In addition to stopping the defendants’ promotion of the plan, the government is asking the federal district court to order the defendants to produce a list of all of their customers, including names, addresses, and social security numbers
vebahealth care
ReplyDeleteLance WallachJanuary 7, 2014 at 10:29 AM
sea nine veba kenneth elliott help with lancae wallach
6707A Penalties & 419 Plans Litigation
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Friday, March 30, 2012
Court CaseSea Nine Veba
As an expert witness in this case the claims against Lance Wallach’s client was dismissed.
Lance Wallach’s side has never lost a case.
J&M ASSOCIATES, INC. v. CALLAHAN
J&M ASSOCIATES, INC., Plaintiff, v. MARK C. CALLAHAN, d/b/a CALLAHAN FINANCIAL SOLUTIONS, et. al., Defendants, Civil Action No. 07-0883-CG-C. United States District Court, S.D. Alabama, Southern Division. November 12, 2010.
ORDER
CALLIE V. S. GRANADE, District Judge.
On December 21, 2007, J&M Associates Inc. ("J&M") brought a lawsuit against Mark C. Callahan d/b/a Callahan Financial Solutions, Lalat Pattanaik d/b/a I.P.S. Private Advisors, Brady Richardson d/b/a Richardson Consultants, J. Michael Mangawang, Fredrick A. Romero, and American General Life Insurance Company ("AIG") alleging breach of contract, negligence, w
Lance Wallach - The Nation's Foremost 419 and 412i plans expert
ReplyDeletewww.lancewallach.com/
Lance Wallach is the nation's foremost expert on 419 plans,412i plans,listed transactions,reportable transactions,Section 79 plans, captive insurance plans, ...
Lance Wallach shared this on Google+
Captive Insurance & 419 Plans Litigation
lancewallachchfc.blogspot.com/
by Lance Wallach - in 60 Google+ circles
Mar 28, 2014 - Reportable Transactions .com: IRS Audits 419, 412i, Captive Insurance Plans With...: By Lance Wallach June 2011 The IRS started aud.
You've visited this page many times. Last visit: 4/4/14
Lance Wallach | LinkedIn
www.linkedin.com/in/lancewallach
Greater New York City Area - director at taxaudit419.com
View Lance Wallach's professional profile on LinkedIn. LinkedIn is the world's largest business network, helping professionals like Lance Wallach discover ...
Lance Wallach shared this on Google+
Lance Wallach | Facebook
https://www.facebook.com/lance.wallach
Lance Wallach is on Facebook. Join Facebook to connect with Lance Wallach and others you may know. Facebook gives people the power to share and makes ...
You shared this on Google+
Lance Wallach (LanceWallach) on Twitter
https://twitter.com/LanceWallach
The latest from Lance Wallach (@LanceWallach). Defending businesses & financial professionals from IRS audits, insurance & bro
Help with Common IRS Problems
ReplyDeleteWednesday, January 29, 2014
Section 79 & 419 Plans Litigation: Protecting Clients from Fraud, Incompetence and Sc...
Section 79 & 419 Plans Litigation: Protecting Clients from Fraud, Incompetence and Sc...: Lance Wallach Nov 12 Parts of this article are from the book published by John Wiley and Sons, Protecting Clients from Fraud, Incompete...412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
User:Lance Wallach
ReplyDeleteFrom TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
Speaker at more than 70 conventions yearly, including the annual national conventions of the American Association of Attorney Certified Public Accountants, National Society of Accountants, National Network of Estate Planning Attorneys, National Association of Tax Practitioners, National Association of Enrolled Agents, National Association of Health Underwriters, American Society of Pension Actuaries, Employee Benefits Expo, Health Insurance Underwriters, NAPFA, NAIFA, FPA, NABA, ALPFA, various state CPA societies, Tax Institutes, as well as medical and insurance conventions, before CLU Societies, CPA/Law Forums throughout the United States, and Estate Planning seminars.
Lance Wallach, a member of the AICPA faculty of teaching professionals and an AICPA course developer, is a frequent and popular speaker on Circular 230 and abusive retirement and welfare benefit plans, financial and estate planning, reducing health insurance costs, and tax-oriented strategies at accounting and financial planning conventions. He has authored numerous books including "The Team Approach to Tax, Financial and Estate Planning by the AICPA and Wealth Preservation Planning by the National Society of Accountants". His newest books "CPAs’ Guide to Life Insurance", and "CPAs’ Guide to Federal and Estate Gift Taxation" will be published this spring by Bisk CPEasy. Mr. Wallach writes for over fifty publications including AICPA Planner, Accounting Today, CPA Journal, Enrolled Agents Journal, Financial Planning, Registered Representative, Tax Practitioners Journal, CPA/Law Forum, Employee Benefit News, Health Underwriter, Advisor and the American Medical Association News. Mr. Wallach teaches accountants how to increase their clientele. Mr. Wallach is listed in Who’s Who in Finance and Industry and has been featured on television and radio financial talk shows.
Ph# 516-938-5007 e-mail: lanwalla@aol.com Web: [1]
412i 419E IRS Audits and Problems
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Tuesday, January 3, 2012
No Shelter Here, Backlash on too-good-to-be-true insurance plan
Remodeling Hanley / Wood
September 2011
By: Lance Wallach
During the past few years, the Internal Revenue Service (IRS) has fined many business owners hundreds of thousands of dollars for participating in several particular types of insurance plans.
The 412(i), 419, captive insurance, and section 79 plans were marketed as a way for small-business owners to set up retirement, welfare benefit plans, or other tax-deductible programs while leveraging huge tax savings, but the IRS put most of them on a list of abusive tax shelters, listed transactions, or similar transactions, etc., and has more recently focused audits on them. Many accountants are unaware of the issues surrounding these plans, and many big-name insurance companies are still encouraging participation in them.
Seems Attractive
The plans are costly up-front, but your money builds over time, and there’s a large payout if the money is removed before death. While many business owners have retirement plans, they also must care for their employees. With one of these plans, business owners are not required to give their workers anything.
Gotcha
Although small business has taken a recessionary hit and owners may not be spending big sums on insurance now, an IRS task force is auditing people who bought these as early as 2004. There is no statute of limitations.
The IRS also requires participants to file Form 8886 informing the IRS of participation in this “abusive transaction.” Failure to file or to file incorrectly will cost the business owner interest and penalties. Plus, you’ll pay back whatever you claimed for a deduction, and there are additional fines — possibly 70% of the tax benefit you claim in a year. And, if your accountant does not confidentially inform on you, he or she will get fined $100,000 by the IRS. Further, the IRS can freeze assets if you don’t pay and can fine you on a corporate and a pers
Lance Wallach Life Insurance
ReplyDeleteTuesday, July 9, 2013
complex scams involving life insurance policies
There are a lot of complex scams involving life insurance policies. What looks like a good idea on paper may leave you with fewer assets and less protection, while lining the pockets of salesmen and insurance brokers. Many people are convinced to sell their current life insurance policy in order to pay the premium needed to "upgrade" their policy. All the money you have lost goes straight to the agent, while your new policy may even cost you more and protect you less.
If you believe that you have been the victim of life insurance sales fraud, we can help you evaluate your claim and explore your options. With considerable experience handling long-term disability and life insurance coverage claims, Lance Wallach wrote the book on insurance that others read for CPE credit.
Posted by Lance Wallach at 9:04 AM 1 comment:
Email This
BlogThis!
Share to Twitter
Share to Facebook
Share to Pinterest
Labels: CPE credit, life insurance coverage, long-term disability
Tuesday, July 2, 2013
National Association of Insurance Commissioners
Jim Donelon, the president of the National Association of Insurance Commissioners, questioned the need for a countrywide halt on approvals of captive insurance deals one day after New York’s regulator said the transactions hide risk.
“Frankly, at this point in time, I don’t see an obvious need for such a moratorium,” Donelon said today on a conference call held by the NAIC.
MetLife Inc. (MET) and Prudential Financial Inc. (PRU), the largest U.S. life insurers, are among companies that use subsidiaries known as captives to transfer risk and increase financial flexibility. Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, said in a report yesterday that other states are allowing captives to use riskier collateral in a “regulatory race to the bottom.”
“The fact that certain insurers are inappropriately using shell games to hide risk and loosen reserve requirements is greatly troubling,” Lawsky said in the report. “Shadow insurance allows companies to divert reserves for other purposes besides paying policyholder claims.”
Donelon said NAIC members already have a group reviewing captives and that state regulators support improved transparency on the deals.
“We are doing what we need to do in a thoughtful, deliberative way,” Donelon said on the call. He said that the NAIC weighs standards rather than imposing regulations and that“one of those standards could be to implement what I consider a knee-jerk position of issuance of moratorium before the house is on fire.”
I do not agree with this.
Contact Information
ReplyDeleteEmail :
Lanwalla@aol.com
Phone :
516-983-5007
Address :
Lance Wallach
www.TaxAudit419.com
www.Vebaplan.org
IRS Form 8938
FATCA requires any U.S. person holding foreign financial assets with an aggregate value exceeding $50,000 to report certain information about those assets on a new form (Form 8938) that must be attached to the taxpayer’s annual tax return. Reporting applies for assets held in taxable years beginning on or after January 1, 2011. Failure to report foreign financial assets on Form 8938 will result in a penalty of $10,000 (and a penalty up to $50,000 for continued failure after IRS notification). Further, underpayments of tax attributable to non-disclosed foreign financial assets will be subject to an additional substantial understatement penalty of 40 percent.
Under FATCA, U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on a new form attached to their tax return. Penalties apply for failure to comply with this new reporting requirement. Reporting is required for assets held in taxable years beginning on or after January 1
As an expert witness Lance Wallach side has never lost a case
ReplyDeleteMONDAY, APRIL 21, 2014
Lance Wallach
Lance Wallach
An organization to help those harmed by the IRS, don't let what happened to Bruce happen to you
Posted by Lance Wallach at 4:57 AM
Email This
BlogThis!
Share to Twitter
Share to Facebook
Share to Pinterest
Labels: IRS, lance wallach expert witness
3 comments:
Lance WallachApril 25, 2014 at 11:10 AM
Lance Wallach Wrote the Book
New and Bestselling AICPA CPE Self-Study Courses
At the AICPA Store you'll find more than 200 titles in a variety of formats to best meet your needs. Get practical guidance. Stay up-to-date on hot topics. Train your staff. Meet CPE reporting deadlines. Get real-time exam results with online grading. Check out this month's picks below. Turn to the AICPA for quality, value and convenience in CPE self-study products. Order today.
Author/Moderator: Lance Wallach, CLU, CHFC, CIMC
Publisher: AICPA
Availability: In Stock
Chapter 1 - Planning for Business Owners
Learning Objectives
ReplyDeleteLance Wallach
Managing Director
Specializing in the following services:
"IRS audit appeals"
U.S. 'Tax Court' cases
Multinational taxation consulting
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:
IRS Taxes
Insurance & retirement plan cases
The Offices of Lance Wallach
516-938-5007 Vebaplan.org
"America's leading tax
representation firm."(TM)
Serving
clients
nationwide
Call us today:
516-938-5007
Email us at:
LanWalla@aol.com
The Lance Wallach Network
TaxAudit419.com ReportableTransactions Listed Transactions IRS6707Apenalty IRSform8886 TaxAdvisorExperts
ExpertTaxAdvisors Taxlibrary.us
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.
Every one of our
consulting
attorneys, CPAs
& ex IRS Agents
Abusive Tax Shelters
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Tuesday, April 19, 2011
Lance Wallach tells national radio audience how IRS can collect billions by eliminating its bureaucracy & incompetence & going after the real culprits
Click hear to listen to the radio interview on this subject.
Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. 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 has never lost a case. Mr. Wallach may be reached at 516/938.5007, wallachinc@gmail.com, or at www.taxaudit419.com or www.lancewallach.com.
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 12:10 PM
Email This
BlogThis!
Share to Twitter
Share to Facebook
Share to Pinterest
Labels: abusive tax shelters, AM, Audits, CBS 60 minutes, finance, interview, IRS, KMJ, KMJ-580, KMJ580, Lance Wallach, offshore trusts, radio, Ray Appleton, show, talk, tax, tax shelters, taxes
15 comments:
Lance WallachOctober 25, 2013 at 9:38 AM
Dolan Media Newswires 01/22/2010
Small business retirement plans fuel litigation
Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are filing lawsuits against thos
Lance Wallach can be reached at: LaWallach@aol.com- 516-938-5007- or www.vebaplan.com
ReplyDelete
Lance WallachMarch 4, 2014 at 8:43 AM
Tuesday, April 19, 2011
Participated in a Sea Nine VEBA plan_Contact Lance Wallach
ReplyDeleteWednesday, January 8, 2014
IRS Put 419 Plans and VEBA Plans on Top of its Hit List
There are some administrators still promoting 419 plans. It defies logic to me that sales people will sell something they know or should know will not hold up under IRS scrutiny just so they can sell cash value life insurance. Most of the rest of the 419 sales people are now selling captive insurance and section 79 scams that the IRS is just starting to audit. But badk to the 419 plan.Back in the day (1996–2000), 419 welfare benefit plans used to be all the rage as a way for profitable business owners to reduce their taxes and build a tax-favorable nest egg under the cover of an “employee benefit plan.”
With an ambiguous tax code and some favorable tax court rulings, promoters of WPBs became emboldened and far too high profile in the late 1990s. This was amplified by the life insurance industry's internal marketing of WBPs because they were funded mainly with cash value life insurance.
Without fully explaining how these plans worked, I will simply state that an employer could try to take deductions of $25,000–$300,000+ where all of the money would go into a WBP and into a CVL insurance policy where it could grow tax free for years.
Depending on how aggressive the third-party administrator of these plans were, clients were told the money would either come out and be taxable when in retirement while some administrators even touted that business owners could get the money out tax free (which in my opinion was total nonsense, but that’s how they were sold).
The IRS steps in
Because of the aggressive marketing of these plans, the IRS put it on the top of its hit list. 419A(f)5 and A(f)6 plans, 419(e)3 plans as well as VEBA plans (which are also WPBs) all got hammered by the IRS in 2007 when it issued three revenue rulings. WBPs were also put on the tax transaction list.
U.S. Attorney goes after 419 plan promoter
One 419 plan promoter who has been around since the 1990s just had a complaint filed against him, his spouse and several related companies. It’s a 43-page complaint with request for a permanent injunction barring him and several companies from dealing with these plans. To read the complaint, click on the following link:
Be careful if it seems to good to be true. Be careful if an insurance agent, or worse, your accountant is pushing a captive insurance of section
Government Seeks Permanent Injunction Against Sea Nine Promoters
ReplyDeleteOn October 9, 2013, United States Attorneys for the Central District of California and the United States Department of Justice filed a complaint seeking to permanently enjoin Kenneth Elliott, Sea Nine Associates, and others from promoting participation in, or managing, voluntary employee beneficiary association (“VEBA”) plans. According to the government, the defendants promoted “a scheme in which [the defendants] sell to customers owning small, often closely-held companies, participation in VEBA plans … and claim that customers can, through the contributions their businesses make to VEBA plan administered or operated by the Defendants, fund for their employees (and more often than not themselves) a valuable insurance-oriented welfare benefit while claiming all of the VEBA contributions as a federal income tax deduction.” The government further alleges that the defendants “have continuted 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.”
According to the complaint, Defendant Kenneth Elliott has admitted that there are over 200 participants in Sea Nine VEBA plans. The government claims that it has completed audits of 41 taxpayers and, in those audits, it has assessed nearly $13.875 million in tax deficiencies. In addition to stopping the defendants’ promotion of the plan, the government is asking the federal district court to order the defendants to produce a list of all of their customers, including names, addresses, and social security numbers