Lance Wallach Life Insurance: Why You Should Stay Away from Section 79 Life Insu...: I’ve had several calls lately from doctors who are being pitched Section 79 plans and are wondering if these plans are any good. The doctor...
Lance Wallach helps with 419 problems. 412i 419 abusive tax shelters IRS audits, lawsuits, Lance Wallach will help www.vebaplan.com
419, 412i, IRS audits, Lance Wallach, Google him helps, The following had something to do with this.
Dennis Cunning Steve Toth Randall Smith Paul Kaplan Herb Green Casey Hermansen
Larry Bell Scott Ridge Judy Carsrud Jeffrey Glasberg Herb McDowel
Greg Roper Joseph Donnelly
Norm Bevan Michael Sonnenberg
r Anthony Fakouri
Steve Burgess
Robin Weingast
IRS audits 419 412i captive insurance and section 79 plans. Lance Wallach will help you.
IRS audits section 79 419 412i plans. www.lancewallach.com for help
, IRS raids, Niche, Robin Weingast, Lance Wallach helps, Sadi trust, grist Mill trust, nova 419 welfare benefit plan problems and how Lance Wallach helps.www.vebaplan.com for more help. Sea Nine VEBA, 419, 412i, IRS audits,Sea Nine VEBA, are all audited by the IRS and people in them probably need help.
Sea Nine VEBA, 419,412i are all IRS audit targets. Lance Wallach can help, www.tazaudit419.com
419, 412i, IRS audits, Lance Wallach, Google him helps, The following had something to do with this. Author to write about these problems.
Dennis Cunning Steve Toth Randall Smith Paul Kaplan Herb Green Casey Hermansen
Larry Bell Scott Ridge Judy Carsrud Jeffrey Glasberg Herb McDowel
Greg Roper Joseph Donnelly
Norm Bevan Michael Sonnenberg
Anthony Fakouri
Steve Burgess
Robin Weingast
" Lance Wallach will help fix the problems that people have that are or were in the plans.
"Professional Benefits Trust" PBI
"Sea Nine Veba"
Bisys
The "Beta Plan"
The "Millennium Plan"
Niche
The "Ridge Plan"
The "Compass Welfare Benefit Plan"
"Section 79 Plans"
"Captive Insurance"
and other similar "412i retirement plans" and "419 welfare benefit plans
Lance Wallach, www.taxaudit419.com will help you with these problems and more like section 79, captive insurance lawsuits and IRS audits. People in the section 79 plans 419 welfare benefit plans captive insurance and 412i pension plans are getting audited by the IRS and then they sue. Google Lance Wallach for help with this. If you need help Lance Wallach as an expert witness has never lost a case. You need help NOW. Google lance wallach or www.vebaplan.com for 419 412i captive insurance or section 79 audits lawsuits get your money back etc.
Customers of James Cunningham d/b/a Cunningham Financial or CFG Consulting LLC? We want to speak with you!
IRS audits and lawsuits result from 419 412i captive insurance and section 79 plans. As an expert witness Lance Wallach has never lost a case.
ReplyDeleteHomeContactSection 79 ArticlesAdditional Resources and Testimonials
SECTION
79
PROBLEM
CPA Massachusetts Society Of Certified Public Accountants, Inc.
Winter 2010 IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A By Lance Wallach Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans are in big trouble. In recent years, the IRS has identified many of these arrangements as abusive devices to funnel tax deductible dollars to shareholders and classified these arrangements as listed transactions." These plans were sold by insurance agents, financial planners, accountants and attorneys seeking large life insurance commissions. In general, taxpayers who engage in a “listed transaction” must report such transaction to the IRS on Form 8886 every year that they “participate” in the transaction, and you do not necessarily have to make a contribution or claim a tax d
ReplyDeleteAll The Expertise You Need To Protect Your Business, Yourself, and Your Family In One
Network:
Once You Experience The
Lance Wallach Advantage
You Won't Need To Look
Anywhere Else for Help
Our Extensive Network of
Highly Skilled
Professionals Have Put It
All Together For You In
These Websites:
Contact Lance and his dynamic
team by calling:
516-938-5007
or
516-236-8440
Lance is an expert about:
The Millennium Plan
SADI Trust
The Beta Plan
Hartford
PAC Life
Niche
Compass Welfare Benefit Plan
Sea Nine VEBA
Bisys
Professional Benefits Trust (PBT)
Insurance Companies
and most other similar 412i retirement plans and 419 welfare benefit plans
Retirement Plan Lawsuits
The Lance Wallach advantage is credibility, experience and trust!
Why go to the students for your financial solutions when you can go directly to the one who taught them?
Lance Wallach wrote the books on life insurance as well as financial and estate planning that the accountants
and other consultants learned from!
For the past 25 years, successful businesses and individuals have turned to Lance Wallach and his team of
accountants, attorneys, ex-IRS agents, and financial experts for assistance, and they are glad they did!
Every one of our
consulting
attorneys, CPAs
& ex IRS Agents
has over 25 years
of professional
experience!
We believe that no
firm has more
experienced
professionals to
assist our clients
than we do!
Books our Legal & Tax Audit
Experts have authored:
New & best selling American
Institute of Certified Public
Accountants books & courses:
Avoiding Circular 230
Common Abusive Small
Business Hot Spots
The Team Approach to Tax,
Financial & Estate Planning
Practical Alternatives to
Commonly Misused and
Abused Small Business Tax
Strategies: Ensuring Your
Client's Future.
Books by Bisk CPEasy, the nation's
largest provider of Professional
education:
The CPA's Guide to Life
Insurance
The CPA's Guide to Federal &
Estate Gift Taxation
By the National Society of
Accountants
Wealth Preservation Planning
By John Wiley & Sons:
Protecting Your Clients From
Fraud, Incompetence and
Scams
Lance Wallach
Lance Wallach: For Expertise You Won't Find Anywhere Else
Speaker of the Year and member of the
AICPA faculty of teaching professionals
Frequent speaker on retirement plans,
financial and estate planning, and abusive
tax shelters
Writes abo
ReplyDeleteAll The Expertise You Need To Protect Your Business, Yourself, and Your Family In One
Network:
Once You Experience The
Lance Wallach Advantage
You Won't Need To Look
Anywhere Else for Help
Our Extensive Network of
Highly Skilled
Professionals Have Put It
All Together For You In
These Websites:
Contact Lance and his dynamic
team by calling:
516-938-5007
or
516-236-8440
Lance is an expert about:
The Millennium Plan
SADI Trust
The Beta Plan
Hartford
PAC Life
Niche
Compass Welfare Benefit Plan
Sea Nine VEBA
Bisys
Professional Benefits Trust (PBT)
Insurance Companies
and most other similar 412i retirement plans and 419 welfare benefit plans
Retirement Plan Lawsuits
The Lance Wallach advantage is credibility, experience and trust!
Why go to the students for your financial solutions when you can go directly to the one who taught them?
Lance Wallach wrote the books on life insurance as well as financial and estate planning that the accountants
and other consultants learned from!
For the past 25 years, successful businesses and individuals have turned to Lance Wallach and his team of
accountants, attorneys, ex-IRS agents, and financial experts for assistance, and they are glad they did!
Every one of our
consulting
attorneys, CPAs
& ex IRS Agents
has over 25 years
of professional
experience!
We believe that no
firm has more
experienced
professionals to
assist our clients
than we do!
Books our Legal & Tax Audit
Experts have authored:
New & best selling American
Institute of Certified Public
Accountants books & courses:
Avoiding Circular 230
Common Abusive Small
Business Hot Spots
The Team Approach to Tax,
Financial & Estate Planning
Practical Alternatives to
Commonly Misused and
Abused Small Business Tax
Strategies: Ensuring Your
Client's Future.
Books by Bisk CPEasy, the nation's
largest provider of Professional
education:
The CPA's Guide to Life
Insurance
The CPA's Guide to Federal &
Estate Gift Taxation
By the National Society of
Accountants
Wealth Preservation Planning
By John Wiley & Sons:
Protecting Your Clients From
Fraud, Incompetence and
Scams
Lance Wallach
Lance Wallach: For Expertise You Won't Find Anywhere Else
Speaker of the Year and member of the
AICPA faculty of teaching professionals
Frequent speaker on retirement plans,
financial and estate planning, and abusive
tax shelters
Writes abo
As an expert witness Lance Wallach side has never lost a case
ReplyDeleteexpert witness, 419 plan,412i plan,captive insurance plan,welfare benefit plan,419 plan problems,section 79 plan
THURSDAY, MAY 29, 2014
Why You Should Stay Away from Section 79 Life Insurance Plans
I’ve had several calls lately from doctors who are being pitched Section 79 plans and are wondering if these plans are any good. The doctors are being told that Section 79 plans are the best wealth-building tool they can use to reduce their income taxes and create a tax-free retirement income.
Unfortunately for these unsuspecting doctors, what they don’t know is that not only are Section 79 plans not the best wealth-building tool they can use, they are not even a good wealth-building tool.
I have problems with Section 79 plans for several reasons:
1. You have to lie to employees to implement them. Most try to exclude workers.
2. The life illustrations given by ignorant or crooked insurance agents are not realistic. Most use today’s historically low lending rates with 2 percent to 3 percent loan spreads on variable loans on EIUL policies (ones that do not have a fixed lending rate).
3. You have to be a C-corporation to use them. Many agents don’t inform their clients of this.
4. The life policies sold in these plans are so bad that the companies don’t want them sold unless they are in Section 79 plans. (The policies are designed to have poor performance so the deduction is increased.) This is similar to the springing cash value problems with the 412i and 419 plans that got people audited and sued.
5. Another very good reason not to use these plans is because there are better alternatives.
6. Another reason not to use a Section 79 plan is because when you run the real numbers, the client would be better off not funding the plan, taking his/her money home after taxes, and funding a good no load EIUL policy.
7. The IRS audits many of them and unless you properly file under IRS 6707A the fines are very large.
ABOUT THE AUTHOR: Lance 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 more than 50 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio’s “All Things Considered” and others.
Copyright Lance Wallach, CLU, CHFC
As an expert witness Lance Wallach side has never lost a case
ReplyDeleteexpert witness, 419 plan,412i plan,captive insurance plan,welfare benefit plan,419 plan problems,section 79 plan
THURSDAY, MAY 29, 2014
Why You Should Stay Away from Section 79 Life Insurance Plans
I’ve had several calls lately from doctors who are being pitched Section 79 plans and are wondering if these plans are any good. The doctors are being told that Section 79 plans are the best wealth-building tool they can use to reduce their income taxes and create a tax-free retirement income.
Unfortunately for these unsuspecting doctors, what they don’t know is that not only are Section 79 plans not the best wealth-building tool they can use, they are not even a good wealth-building tool.
I have problems with Section 79 plans for several reasons:
1. You have to lie to employees to implement them. Most try to exclude workers.
2. The life illustrations given by ignorant or crooked insurance agents are not realistic. Most use today’s historically low lending rates with 2 percent to 3 percent loan spreads on variable loans on EIUL policies (ones that do not have a fixed lending rate).
3. You have to be a C-corporation to use them. Many agents don’t inform their clients of this.
4. The life policies sold in these plans are so bad that the companies don’t want them sold unless they are in Section 79 plans. (The policies are designed to have poor performance so the deduction is increased.) This is similar to the springing cash value problems with the 412i and 419 plans that got people audited and sued.
5. Another very good reason not to use these plans is because there are better alternatives.
6. Another reason not to use a Section 79 plan is because when you run the real numbers, the client would be better off not funding the plan, taking his/her money home after taxes, and funding a good no load EIUL policy.
7. The IRS audits many of them and unless you properly file under IRS 6707A the fines are very large.
ABOUT THE AUTHOR: Lance 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 more than 50 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio’s “All Things Considered” and others.
Copyright Lance Wallach, CLU, CHFC
This comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteWHAT IS A VEBA?
ReplyDeleteIt is virtually certain that, in time, employees and healthcare providers will become more familiar with VEBAs. “Over the next 5 to 10 years, as employers continue to face unrelenting pressures to control costs, these types of strategic responses — whether it be a VEBA or some other vehicle — will continue,” says Alan Lyles, ScD, MPH, PhD, the Henry A. Rosenberg Professor of Public, Private, and NonProfit Partnerships at the University of Baltimore.
Internal Revenue Code section 501(c)(9) enables an employer or union to make contributions into a VEBA — a tax-exempt trust account on behalf of covered workers or retirees. Dollars in a VEBA grow tax-free and the earnings are not taxed when used to pay for eligible out-of-pocket healthcare expenditures and insurance premiums.1 A VEBA is an individual trust that replaces the employer as a guarantor of healthcare coverage. As such, it is not a health benefit plan, but rather a funding vehicle to pay for one’s healthcare costs.
VEBAs were first codified by the IRS in 1928. In 1976, 6,000 VEBAs were in existence. That number increased steadily until 1993, when it reached 15,000. After 1993, the number decreased because of changes in the tax code, bottoming out at 12,000 two years ago. Now, their number is on the rise again, thanks to more favorable tax laws, union interest in gaining control of healthcare benefits, and corporate understanding that relieving themselves of large liabilities makes a stock more attractive to investors.
Currently, VEBAs are in existence in a number of industries, primarily steel, telecommunications, utilities, and automobile manufacturers and their suppliers. These VEBAs are administered by companies in those industries, or in some cases, by the unions that represent workers.
WHAT IS A VEBA?
ReplyDeleteIt is virtually certain that, in time, employees and healthcare providers will become more familiar with VEBAs. “Over the next 5 to 10 years, as employers continue to face unrelenting pressures to control costs, these types of strategic responses — whether it be a VEBA or some other vehicle — will continue,” says Alan Lyles, ScD, MPH, PhD, the Henry A. Rosenberg Professor of Public, Private, and NonProfit Partnerships at the University of Baltimore.
Internal Revenue Code section 501(c)(9) enables an employer or union to make contributions into a VEBA — a tax-exempt trust account on behalf of covered workers or retirees. Dollars in a VEBA grow tax-free and the earnings are not taxed when used to pay for eligible out-of-pocket healthcare expenditures and insurance premiums.1 A VEBA is an individual trust that replaces the employer as a guarantor of healthcare coverage. As such, it is not a health benefit plan, but rather a funding vehicle to pay for one’s healthcare costs.
VEBAs were first codified by the IRS in 1928. In 1976, 6,000 VEBAs were in existence. That number increased steadily until 1993, when it reached 15,000. After 1993, the number decreased because of changes in the tax code, bottoming out at 12,000 two years ago. Now, their number is on the rise again, thanks to more favorable tax laws, union interest in gaining control of healthcare benefits, and corporate understanding that relieving themselves of large liabilities makes a stock more attractive to investors.
Currently, VEBAs are in existence in a number of industries, primarily steel, telecommunications, utilities, and automobile manufacturers and their suppliers. These VEBAs are administered by companies in those industries, or in some cases, by the unions that represent workers.
ReplyDeleteLife insurance Litigation : About
5/15/2015, 12:04:00 PM
Life insurance Litigation : About
Form 8886, filing threshold
4/29/2015, 3:32:00 PM
Form 8886, filing threshold
200k Penalty: Abusive 412(i) Retirement Plans Can Get Accountants Fined $200,000
5/15/2015, 4:02:00 PM
200k Penalty: Abusive 412(i) Retirement Plans Can Get Accountants Fined $200,000
Captive Insurance Plans | IRS Audit Representaion
5/15/2015, 4:01:00 PM
Captive Insurance Plans | IRS Audit Representaion
Google - Bookmarks
4/29/2015, 3:49:00 PM
Google - Bookmarks
ADDITIONAL EMAILS WITH THE IRS
Sent: Monday, November 28, 2011 2:01 PM
To: Itzkowitz Ronald R
Subject: Lance Wallach
Hope all is well with you. I never heard from your contact about the abusive shelter information that you sent to him. This stuff on section 79 and captive is not all over the net and is sold by the same promoters that used to sell the 412i and 419 scams??????
Lance Wallach
Sent: Monday, November 28, 2011 3:36 PM
To: Havicon Jon S
Cc: 'LAWALLACH@aol.com'
Subject: RE: Lance Wallach
Hi, Jon,
Would you please follow-up with your contact.
Thanks,
Ron
From:Jon Havicon
To: Lance Wallach
Sent: 12/22/2011 2:36 P.M.
Subj: IRC 79
Lance,
I heard back from my referral contact. She said if you know of any specific examples of abuse in this area, let me know and we'll forward the our Lead Development Center. Thanks.
Jon S. Havicon
Internal Revenue Agent
From: Lance Wallach
Sent: Friday, December 23, 2011 8:46 AM
To: Jon Havicon
Subject: Re: IRC 79
Dear Jon:
Many of the promoters of sect. 79 plans are the same people that promoted 419 and abusive 412i plans.
Most of the abuses, as of the prior plans, are in the face to face selling. Saying that the IRS approves the plans, putting large amounts of permanent life insurance in the plans and saying that it is deductible, etc. It is the same with the sales of captive insurance. They are telling the owners of the business that they can deduct large amounts of life insurance and in later years get the money out tax free. These promoters are a lot smarter about what they put in print, than in prior years. You may want to go on Google and type in Section 79 plans and see all the promoters and others.
In the 90s I warned about abusive 419 and 412i plans but the IRS did not do much to catch the abusers for years. In 2002 I spoke at ASPA in Washington, and then had a private meeting with senior IRS and Treasury officials which was arranged by the then acting IRS Comm. and arranged by MS. Gold, giving more details. Then the IRS really started going after all of the abusive 419 and 412i plans.This is the same pattern today.
Lance Wallach
From: Jon Havicon
Sent: Friday, December 23, 2011 9:46 AM
To: Lance Wallach
Subject: Re: IRC 79
Thanks for the update. I'll forward to our Lead Development Center for further review.
Jon S. Havicon
IRS Agent
ReplyDeleteLife insurance Litigation : About
5/15/2015, 12:04:00 PM
Life insurance Litigation : About
Form 8886, filing threshold
4/29/2015, 3:32:00 PM
Form 8886, filing threshold
200k Penalty: Abusive 412(i) Retirement Plans Can Get Accountants Fined $200,000
5/15/2015, 4:02:00 PM
200k Penalty: Abusive 412(i) Retirement Plans Can Get Accountants Fined $200,000
Captive Insurance Plans | IRS Audit Representaion
5/15/2015, 4:01:00 PM
Captive Insurance Plans | IRS Audit Representaion
Google - Bookmarks
4/29/2015, 3:49:00 PM
Google - Bookmarks
ADDITIONAL EMAILS WITH THE IRS
Sent: Monday, November 28, 2011 2:01 PM
To: Itzkowitz Ronald R
Subject: Lance Wallach
Hope all is well with you. I never heard from your contact about the abusive shelter information that you sent to him. This stuff on section 79 and captive is not all over the net and is sold by the same promoters that used to sell the 412i and 419 scams??????
Lance Wallach
Sent: Monday, November 28, 2011 3:36 PM
To: Havicon Jon S
Cc: 'LAWALLACH@aol.com'
Subject: RE: Lance Wallach
Hi, Jon,
Would you please follow-up with your contact.
Thanks,
Ron
From:Jon Havicon
To: Lance Wallach
Sent: 12/22/2011 2:36 P.M.
Subj: IRC 79
Lance,
I heard back from my referral contact. She said if you know of any specific examples of abuse in this area, let me know and we'll forward the our Lead Development Center. Thanks.
Jon S. Havicon
Internal Revenue Agent
From: Lance Wallach
Sent: Friday, December 23, 2011 8:46 AM
To: Jon Havicon
Subject: Re: IRC 79
Dear Jon:
Many of the promoters of sect. 79 plans are the same people that promoted 419 and abusive 412i plans.
Most of the abuses, as of the prior plans, are in the face to face selling. Saying that the IRS approves the plans, putting large amounts of permanent life insurance in the plans and saying that it is deductible, etc. It is the same with the sales of captive insurance. They are telling the owners of the business that they can deduct large amounts of life insurance and in later years get the money out tax free. These promoters are a lot smarter about what they put in print, than in prior years. You may want to go on Google and type in Section 79 plans and see all the promoters and others.
In the 90s I warned about abusive 419 and 412i plans but the IRS did not do much to catch the abusers for years. In 2002 I spoke at ASPA in Washington, and then had a private meeting with senior IRS and Treasury officials which was arranged by the then acting IRS Comm. and arranged by MS. Gold, giving more details. Then the IRS really started going after all of the abusive 419 and 412i plans.This is the same pattern today.
Lance Wallach
From: Jon Havicon
Sent: Friday, December 23, 2011 9:46 AM
To: Lance Wallach
Subject: Re: IRC 79
Thanks for the update. I'll forward to our Lead Development Center for further review.
Jon S. Havicon
IRS Agent
This comment has been removed by a blog administrator.
ReplyDelete