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Lance Wallach
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Journal of Accountancy Large Logo Home > September 2008 > Abusive Insurance and Retirement Plans ShareThis | Print Article Print TAX / EMPLOYEE BENEFITS Abusive Insurance and Retirement Plans Single–employer section 419 welfare benefit plans are the latest incarnation in insurance deductions the IRS deems abusive BY LANCE WALLACH SEPTEMBER... Continue reading
Facebook's insiders escape 200 million in taxes. Lance Wallach As I discuss in my Estates and Trusts book the Facebook insiders are using a GRAT to avoid estate and gift taxes. A grantor retained annuity trust is a legal way, if done properly, to avoid taxes. The strategy is a... Continue reading
Why are some 419 Insurance Welfare Benefit Plans Continue To Get Accountants Into Trouble ? - Continue reading
June 2011 The IRS is cracking down on what it considers to be abusive tax shelters. Many of them are being marketed to small business owners by insurance professionals, financial planners and even accountants and attorneys. I speak at numerous conventions, for both business owners and accountants. And after I... Continue reading
The IRS started auditing 419 plans in the ‘90s, and then continued going after 412i and other plans that they considered abusive, listed, or reportable transactions, or substantially similar to such transactions. Continue reading
Accountants, Business Owners, and Others Face Large IRS Fines: Continue reading
Since the late nineties, unsuspecting business owners and professionals have purchased retirement plans and other plans from insurance professionals. The IRS has organized task forces to go after the abusive plans. In the past, a business owner who was audited with an abusive plan would lose his tax deduction and... Continue reading
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in big trouble. Continue reading
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in big trouble. Go to the following URL for more important information. : Continue reading
Anyone may use this free forum provided by America’s Association of Leading Experts in the Legal, Financial, Accounting and Insurance Fields and Your Source of Trusted Professionals. Continue reading
Lance Wallach, the nation's leading tax resolution expert and his team of CPAs, former IRS Agents, Tax Attorneys, and Tax Audit Professionals will fight the IRS and insurance companies who sold you abusive tax shelters! Call (516) 938-5007 or email also visit & Continue reading
Insurance agents and others sell 412i, 419, captive insurance and section 79 plans to unsuspecting business owners. Since the IRS is calling these plans abusive tax shelters, many small business owners are getting audited and getting penalties under IRC 6707A. They have even fined material advisors and accountants for their participation, and small business owners need to know how to protect themselves from the long reach of the IRS. Continue reading
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... Continue reading
The following example is unfortunately not an isolated incident of an abusive sales practice. If accountants were consulted more often by their clients, maybe the following would never happen. Senior citizen clients thought they had every reason to trust Mr. Sell BigPolicy as a financial counselor... Mr. Sell Bigpolicy denies all wrongdoing, but one of his clients – a 73-year-old widow caring for a son with Down syndrome – said he tricked her into buying complicated insurance contracts that left her unable to pay dental and home repair bills. Continue reading
Beware of someone whose fee is based on a percentage of how much you save in taxes. Or who promises to get you a significantly higher refund than anyone else can. People like these are likely to prepare outrageous returns that will land you deep in trouble with the IRS. Just because the IRS says you owe money doesn’t mean that’s correct. The agency makes mistakes - plenty of them, even computing penalties and interest. Continue reading
The IRS has various task forces auditing all section 419, section 412(i), and other plans that tend to be abusive. These plans are sold by most insurance agents. The IRS is looking to raise money and is not looking to correct plans or help taxpayers. The fines for being in a listed, abusive, or similar transaction are up to $200,000 per year. Continue reading
There are many problems you can run into with the IRS. The following is an overview and helpful information on some of these confusing issues. · IRS Penalties · Unfiled Tax Returns · IRS Liens · IRS Audits · Payroll Tax Problems · IRS Levies · IRS Seizures · Wage Garnishments Continue reading
Taxes take a large bite out of taxable mutual funds. Recent tax-break laws will end in 2010 and it would be smart for mutual fund investors to keep an eye on one of the main drags on performance: taxes. Continue reading
This course will enable the practitioner to better understand many of the abusive insurance and annuity-based products being marketed to your clients and how you can alleviate exposure to IRS scrutiny. Continue reading
CPA’s Guide to Life Insurance Author/Moderator: Lance Wallach, CLU, CHFC, CIMC Introduction The CPA faces a daunting series of roles—those of advisor, practitioner, and consumer. Life insurance can be a powerful tool; improperly wielded, it can lead to malpractice. The authors hope this text effectively introduces the advisor to basic... Continue reading
Some strategies, such as IRS section 419 and 412(i) plans, used life insurance as vehicles to bring about benefits. Unfortunately, the high life insurance commissions (often 90 percent of the contribution, or more) fostered an environment that led to aggressive and noncompliant plans. Continue reading
Recently IRS raided Benistar, which is also known as the Grist Mill Trust, the promoter and operator of one of the better known and more heavily scrutinized of the Section 419 life insurance plans. IRS attacked the Benistar 419 plan, and one of its tactics was to demand the names of all the clients Benistar worked with — so they could be audited by the IRS, Benistar refused to give the names and actually appealed the decision to turn over the names. The appeal was unsuccessful, but Benistar officials still refused to give up the names. Recently, the IRS raided the Benistar office and took hundreds of boxes of information, which included information on clients who were in their 419 plan. In documents filed by Benistar itself, they stated that 35 to 50 armed IRS agents descended upon their office to seize documents. Continue reading
Some strategies, such as IRS Section 419 and 412(i) plans, used life insurance as vehicles to bring about benefits. Unfortunately, almost all the plans were noncompliant, even though insurance companies vetted them and encouraged their agents to sell them. This fostered an environment that led to numerous IRS crackdowns, disallowing tax deductions, and spurned clients to sue their insurance agents and others. Continue reading
Change in tax has left some small businesses and certain benefit plans subject to IRS fines; the advisers who sold these plans may pay the price Continue reading
Have you seen the commercials where certain companies advertise that they can settle an IRS debt for “pennies on the dollar”? Usually the offer is too good to be true. Besides, you never want to have the problem in the first place. The chances of an individual being audited have approximately doubled since 2000. So you need to be careful with your tax return. Continue reading