Forbes big 419 tax court case , 5877 views ,34 likes Published on Published onMarch 2, 2018 Edit article View stats Lance Wallach Lance Wallach Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker 781 articles 3 Unlike 1 Comment 0
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Peter J Reilly , CONTRIBUTOR
I focus on the tax issues of individuals, businesses & more
When a Tax Court judge writes "purported" it generally means something like "Liar, liar pants on fire" or bovine excrement. Northwestern's conservatism in not getting caught up in the 419 mania is another mark in its favor. For the last two decades Lance Wallach has been a voice crying out in the wilderness on the perils of 419(e) employee welfare plans. Lance is not an attorney, CPA or actuary. A graduate of Baruch College he trained as a financial planner with Mutual Benefit Life and then moved on to New England Life where he was a top producer selling life insurance as part of sophisticated plans. Now he speaks and serves as an expert witness helping to repair the damage done by insurance companies who promoted abusive tax plans.
The Plan That Should Have Stood Up?
Somehow or other Lance and I became facebook buds and when I saw the decision in Our Country Home Enterpise Inc, I immediately contacted him. I thought he would view the decision as vindication of his view on these plans. I was surprised when he told me that he thought the decision was wrong. His assessment of the situation was that Ron Snyder, whose Sterling Plan was about the only 419 plan which should have worked, was too frugal when it came to hiring lawyers to defend the plan. This might be
Some of the listed transactions CPA tax practitioners are most likely to encounter are employee benefit insurance plans that the IRS has deemed abusive. Many of these plans have been sold by promoters in conjunction with life insurance companies.
As long ago as 1984, with the addition of IRC §§ 419 and 419A, Congress and the IRS took aim at unduly accelerated deductions and other perceived abuses. More recently, with guidance and a ruling issued in fall 2007, the Service declared as abusive certain trust arrangements involving cash-value life insurance and providing post-retirement medical and life insurance benefits.
The new "more likely than not" penalty standard for tax preparers under IRC § 6694 raises the stakes for CPAs whose clients may have maintained or participated in such a plan. Failure to disclose a listed transaction carries particularly severe potential penalties.
Lance Wallach, CLU, ChFC, CIMC, is the author of the AICPA’s The Team Approach to Tax, Financial and Estate Planning. He can be reached at lawallach@aol.com or on the Web at, www.vebaplan.com or 516-938-5007. The information in this article is not intended as accounting, legal, financial or any other type of advice for any specific individual or other entity. You should consult an appropriate professional for such advice.
Forbes big 419 tax court case , 5877 views ,34 likes
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Lance Wallach
Lance Wallach
Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker
781 articles
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Peter J Reilly , CONTRIBUTOR
I focus on the tax issues of individuals, businesses & more
When a Tax Court judge writes "purported" it generally means something like "Liar, liar pants on fire" or bovine excrement.
Northwestern's conservatism in not getting caught up in the 419 mania is another mark in its favor.
For the last two decades Lance Wallach has been a voice crying out in the wilderness on the perils of 419(e) employee welfare plans. Lance is not an attorney, CPA or actuary. A graduate of Baruch College he trained as a financial planner with Mutual Benefit Life and then moved on to New England Life where he was a top producer selling life insurance as part of sophisticated plans. Now he speaks and serves as an expert witness helping to repair the damage done by insurance companies who promoted abusive tax plans.
The Plan That Should Have Stood Up?
Somehow or other Lance and I became facebook buds and when I saw the decision in Our Country Home Enterpise Inc, I immediately contacted him. I thought he would view the decision as vindication of his view on these plans. I was surprised when he told me that he thought the decision was wrong. His assessment of the situation was that Ron Snyder, whose Sterling Plan was about the only 419 plan which should have worked, was too frugal when it came to hiring lawyers to defend the plan. This might be
Lance Wallach
ReplyDeleteAbusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker
788 articles
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EXECUTIVE SUMMARY
Some of the listed transactions CPA tax practitioners are most likely to encounter are employee benefit insurance plans that the IRS has deemed abusive. Many of these plans have been sold by promoters in conjunction with life insurance companies.
As long ago as 1984, with the addition of IRC §§ 419 and 419A, Congress and the IRS took aim at unduly accelerated deductions and other perceived abuses. More recently, with guidance and a ruling issued in fall 2007, the Service declared as abusive certain trust arrangements involving cash-value life insurance and providing post-retirement medical and life insurance benefits.
The new "more likely than not" penalty standard for tax preparers under IRC § 6694 raises the stakes for CPAs whose clients may have maintained or participated in such a plan. Failure to disclose a listed transaction carries particularly severe potential penalties.
Lance Wallach, CLU, ChFC, CIMC, is the author of the AICPA’s The Team Approach to Tax, Financial and Estate Planning. He can be reached at lawallach@aol.com or on the Web at, www.vebaplan.com or 516-938-5007. The information in this article is not intended as accounting, legal, financial or any other type of advice for any specific individual or other entity. You should consult an appropriate professional for such advice.
It began as a conservationist dream backed by generous tax benefits. From enactment over 40 years ago through the 1990s
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