Showing posts with label welfare benefit plans. Show all posts
Showing posts with label welfare benefit plans. Show all posts
Lance Wallach Wrote the Book
Chapter 2
Abuses in Utilizing Insurance, Retirement, and Welfare Benefit
Plans
2.1.0 Learning Objectives
After completing this chapter, you should
·
Learn to identify
potentially abusive deductions claimed on your client’s tax returns.
·
Identify whether
financial products being marketed or previously sold to your clients are potentially abusive tax shelters
and/or listed transactions.
·
Learn to avoid
financial exposure to yourself and your clients for aggressive insurance, retirement, and financial
planning strategies being marketed today.
·
Develop the ability to
advise your clients so that they can avoid IRS penalties and deduction disallowances.
Abusive Tax Shelters & 419 Plans Lawsuits: Tax Shelter Help from - Attorneys-USA.org
Abusive Tax Shelters & 419 Plans Lawsuits: Tax Shelter Help from - Attorneys-USA.org: Tax Shelter Help from - Attorneys-USA.org
More Problems for 419 Plans
For years, life insurance companies and agents have tried to find ways of making life insurance premiums paid by business owners tax deductible. This would allow them to sell policies at a "discount."
The problem became acute a few years ago with outlandish claims about how §§419A(f)(5) and (6) of the Internal Revenue Code (IRC) exempted employers from any tax deduction limitations. Other inaccurate assertions were made as well, until the Internal Revenue Service (IRS) finally put a stop to such egregious misrepresentations in 2002 by issuing regulations and naming such plans as "potentially abusive tax shelters" (or "listed transactions") that needed to be registered and disclosed to the IRS.This appeared to put an end to the scourge of scurrilous promoters, as many such plans disappeared from the landscape.
And what happened to the providers that were peddling §§419A(f)(5) and (6) life insurance plans a few years ago? We recently found the answer: Most of them found a new life as promoters of so-called "419(e)" welfare benefit plans.
READ THE REST HERE
Abusive Insurance Plans Get Red Flag - HG.org
Tax Briefs - The IRS in Notice 2007-83 identified as listed transactions certain trust arrangements involving cash value life insurance policies. Revenue Ruling 2007-65, issued simultaneously, addressed situations where the tax deduction has been disallowed, in part or in whole, for premiums paid on such cash-value life insurance policies.
Also simultaneously issued was Notice 2007-84, which disallows tax deductions and imposes severe penalties for welfare benefit plans that primarily and impermissibly benefit shareholders and highly compensated employees.
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