Abusive Insurance and Retirement Plans

Abusive Insurance and Retirement Plans

Lance Wallach_ IRS Tax Solutions

Much has been made of recent restructuring legislation pointed at ending IRS errors and abuse. Historically, such legislation has had little impact on the agency. The reason is the IRS simply does not tell the truth about taxpayers' rights. Consequently, if you do not understand your rights in a given situation, you cannot expect the IRS to explain them. For example, when was the last time you received a kind letter from the IRS explaining that you paid too much in taxes or overlooked certain rights that might cut your bill? Such letters are rare indeed!

On the other hand, millions of citizen are confronted by the agency for alleged legal failings. Each year the IRS...

• issues some one hundred million computer notices affecting nearly $200 billion in accounts;
• issues over thirty-four million penalties against individuals and businesses;
• executes over four million wage and bank levies;
• files about four million general tax liens;
• seizes tens of thousands of businesses, autos, homes, and other property, and
• audits nearly 2 million business and personal income tax returns.

Nearly everybody has gone through some kind of IRS enforcement difficulty and we all know somebody who is going through it now. But few have effective solutions. Too often, professional advice from tax accountants is, "well, it's the IRS. You just have to pay." Unfortunately, precious few take the time to understand that there are solutions to every IRS problem. Indeed, there is no such thing as a hopeless tax case. There is always a way to solve the problem.

For many people, this Problem Solver provides an immediate solution to a pressing IRS problem. Simple solutions are provided to problems such as wage and bank levies, IRS computer notices and penalty assessments. In other cases, this Problem Solver serves as a guide to what you must do to ultimately solve your problem. And even if you owe taxes, penalties and interest you cannot pay, you can be forgiven of all or part of your debt.

Because the IRS resists directing you to solutions to most tax problems (especially the problem of excessive tax debt) this IRS Common Problems Solver is designed to fill that void. It describes numerous taxpayer rights and remedies and shows you the steps to take to determine which solution best suits your situation. In addition, you will be introduced to an array of affordable, effective self-help materials and services to help you end your problem.

Too often, the biggest IRS problem for millions of people is the fact that it costs more to fight the agency than it does to just pay the tax. For those who cannot pay the tax or afford professional help, they live only with the promise of life-long indebtedness to the IRS--a hopeless situation. Now there is a solution. Our effective, inexpensive and easy to follow materials guide you through what you might have thought was an impossible situation. And, for those who continue to find it necessary to enlist the help of a tax professional, I am pleased to introduce a revolutionary new and affordable professional service we call the Tax Situation Analysis. Now you can get the professional help you need at an affordable cost.

The Tax Situation Analysis is a professional analysis of your entire tax problem and part of our Tax Solution Network membership. It is performed either by myself or one of my Tax Freedom Institute tax professionals. To perform the service, we first show you how to gather the data you need to respond to a detailed questionnaire. By completing the questionnaire and gathering the data, you actually perform work for which tax professionals often charge hundreds, perhaps thousands of dollars. We then use the data to fully evaluate your situation and develop a plan to resolve your dispute. My twenty-three years of experience dealing with the IRS in every conceivable situation allows us to offer this service at a very reasonable price.

Now, at last, the price of tax freedom is not out of reach for anyone. However, the IRS is always working to close the door to freedom that we have worked so hard to open and expose. The IRS is always working behind the scenes to limit your rights thereby ensuring you are always a slave to tax debt. Therefore, if you have a tax problem, now is the time to address it. It only gets worse as time goes on

 

IRS Code

Internal Revenue Code

                

Internal Revenue Code Section 79

Internal Revenue Code Section 79 Plans and Captive Insurance History

Many lawsuits against insurance businesses, such as Hartford, Pacific Life, Indianapolis Life, AIG, and Penn Mutual, to name just a couple of. Agents, accountants, and attorneys had been also successfully sued.

Lately, insurance companies, agents, accountants, and others have been selling captive insurance and Section 79 scams. The motivations are precisely the exact same. They push huge tax deductions for enterprise owners. There are also large commissions for salespeople, although this is usually mentioned only in passing, if at all.

Anyone participating in a listed or reportable transaction ought to effectively file Form 8886 or face big IRS fines. A listed transaction is any transaction specifically identified as such by published IRS guidance, or one substantially similar to that transaction.

“In my expertise, the desire to stay away from taxes is usually the principal and sometimes the only reason why folks participate in Section 79, captive insurance, or 419 plans. That is why I normally take the position that virtually everybody participating in 1 of these arrangements really should file Form 8886, if only protectively as a precaution,” says Wallach.

 Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning.  He writes about 412(i), 419, Section79, FBAR, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxadvisorexpert.com.

                                                                                                                          

The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.