IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A | Lance Wallach | LinkedIn

IRS Attacks Business Owners in 419, 412, Section 79 and Captive Insurance Plans Under Section 6707A | Lance Wallach | LinkedIn

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  1. Reportable Transactions Resources
    Natural persons who fail
    to disclose a reportable
    transaction to the IRS
    are subject to a $10,000
    penalty. Other
    nonreporting taxpayers
    are subject to a $50,000
    penalty.

    The penalties are
    increased to $100,000
    and $200,000,
    respectively, for natural
    persons and other
    taxpayers who fail to
    disclose a reportable
    transaction that is a
    listed transaction
    The IRS Says:
    516 - 935 - 7346
    Even plan administrators pleaded for help, but
    thousand of people got IRS audits, fines and penalties
    anyway.
    Email an
    Expert
    See an excerpt from an email by a plan administrator
    frustrated with IRS activities below
    To: Everyone I know!

    It could be you.

    I am a Third Party Administrator and am asking for your help. One of my clients with 4 employees who simply funded
    a retirement plan with $500,000 recently endured a 5.5 year IRS audit of his 412 (i) pension plan. Upon completion
    of the audit the client owes $55,000 in income taxes for 2004-2006 and has refunds from 2007-2008 of $55,000
    (timing difference only) He owes about $30,000 in blackmail money (He really should owe nothing!). The SBSE
    income tax agent has threatened to assess $800,000 in penalties under Code Section 6707a. The IRS is far
    exceeding their authority in assessing the 6707a penalty this is totally prosecutorial abuse. WE must put a stop to
    this! My client cooperated and acted in good faith and did file the form 8886 (Maybe not 100% correctly but none
    the less, he did file the necessary forms).……

    Dennis Cunning

    Call 516 935-7346
    Call 516-935-7346

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