Showing posts with label IRS Problems. Show all posts
Showing posts with label IRS Problems. Show all posts
Sunday, October 20, 2019
Abusive Insurance, Welfare Benefit, and Retirement Plans
Abusive Insurance, Welfare Benefit, and Retirement Plans: Published in Tax Practice: Tax Notes March 2, 2009 By Lance Wallach 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...
Captive Insurance Plans, Want to Get Audited? - HG.org
Captive Insurance Plans, Want to Get Audited? - HG.org: The insurance industry have been conjuring ways to make life insurance premiums tax deductible. Over the years we have seen many schemes that have failed IRS scrutiny. Welfare benefit plans set up und
Is your Captive Insurance Abusive?
Is your Captive Insurance Abusive?: The IRS started auditing § 419 plans in the 1990s, and then continued going after § 412(i) and other plans that they considered abusive, listed, or reportable transactions, or substantially similar to such transactions. If an IRS audit disallows the § 419 plan or the § 412(i) plan, not only does the taxpayer lose the deduction and pay interest...
Internal Revenue Targeting Section 79 Plans. Are you at risk?
Internal Revenue Targeting Section 79 Plans. Are you at risk?: Most People have never heard of a Section 79 Plan because its a wealth building tool pitched by insurance agents that do not understand the math behind the plan. Captive Insurance, Listed and Reportable Transactions are all targets of IRS Auditors
Court Rules That Section 419A(f)(6) Plan Sponsor Made Taxable Distribution of Life Insurance Policies | Executive Capital Resources
Court Rules That Section 419A(f)(6) Plan Sponsor Made Taxable Distribution of Life Insurance Policies | Executive Capital Resources: TOPIC: Court Rules That Section 419A(f)(6) Plan Sponsor Made Taxable Distribution of Life Insurance Policies
CITES: Gluckman v. Comm'r, No. 13-761, 2013 WL 6124391 (2nd Cir. Nov. 22, 2013); Gluckman v. Comm'r, T.C.M. 2012-329, 2012 WL 5951351 (T.C. Nov. 28, 2012); I.R.C. § 419A(f)(6) (2012); I.R.C. § 6662(b)(2) (2012); Schwab v. Comm'r, 111 AFTR-2d 2013-667 (9th Cir. 2013).
Scroll to read the full report or click here to download a printable pdf.
SUMMARY: The Second Circuit upheld a Tax Court decision that the insured taxpayers, a husband and wife, received a taxable distribution of life insurance policies from a Section 419A multi-employer welfare benefit plan. The court found in favor of the IRS even though the policies were transferred directly to a second welfare benefit plan and not to the taxpayers. Because the taxpayers were the majority shareholders, the only directors and one served as President of the plan sponsor, the court found that, once the plan was terminated and withdrawal authorized by plan administrator, the taxpayers exercised actual control over the policies with no "substantial risk of forfeiture."
FACTS: The Gluckmans ("taxpayers") were majority shared
CITES: Gluckman v. Comm'r, No. 13-761, 2013 WL 6124391 (2nd Cir. Nov. 22, 2013); Gluckman v. Comm'r, T.C.M. 2012-329, 2012 WL 5951351 (T.C. Nov. 28, 2012); I.R.C. § 419A(f)(6) (2012); I.R.C. § 6662(b)(2) (2012); Schwab v. Comm'r, 111 AFTR-2d 2013-667 (9th Cir. 2013).
Scroll to read the full report or click here to download a printable pdf.
SUMMARY: The Second Circuit upheld a Tax Court decision that the insured taxpayers, a husband and wife, received a taxable distribution of life insurance policies from a Section 419A multi-employer welfare benefit plan. The court found in favor of the IRS even though the policies were transferred directly to a second welfare benefit plan and not to the taxpayers. Because the taxpayers were the majority shareholders, the only directors and one served as President of the plan sponsor, the court found that, once the plan was terminated and withdrawal authorized by plan administrator, the taxpayers exercised actual control over the policies with no "substantial risk of forfeiture."
FACTS: The Gluckmans ("taxpayers") were majority shared
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