IRS Auditing Many 412(i) Plans - Lance Wallach

IRS Auditing Many 412(i) Plans - Lance Wallach

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    Home > September 2008 > Abusive Insurance and Retirement Plans
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    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 2008
    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 accelera

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