Ignorance of Listed Transaction Requirement provides no relief to 6707A penalty for 419 Taxpayers.
Williams Coulson receives many calls from taxpayers who are contesting non-reporting penalties (6707A) for failure to file IRS Form 8886 with respect to participation in 419 plans like the Sea Nine VEBA, promoted by Ken Elliott. Some taxpayers claim that they were never told that the 419 plan was a “listed transaction” and that the filing of Form 8886 was required. The problem is that the 6707A penalty provides no relief for due diligence, reasonable cause or good faith. Therefore, when promoters fail to tell their clients that the plan is a listed transaction and filings are required, the promoter is guaranteeing that if the customer is audited, the penalties will be severe.
Ignorance of Listed Transaction Requirement provides no relief to 6707A penalty for 419 Taxpayers.
ReplyDeleteWilliams Coulson receives many calls from taxpayers who are contesting non-reporting penalties (6707A) for failure to file IRS Form 8886 with respect to participation in 419 plans like the Sea Nine VEBA, promoted by Ken Elliott. Some taxpayers claim that they were never told that the 419 plan was a “listed transaction” and that the filing of Form 8886 was required. The problem is that the 6707A penalty provides no relief for due diligence, reasonable cause or good faith. Therefore, when promoters fail to tell their clients that the plan is a listed transaction and filings are required, the promoter is guaranteeing that if the customer is audited, the penalties will be severe.