419 412i

Submitted by Anonymous (not verified) on Mon, 03/02/2015 - 13:52

Life insurance Policy
By:Lance Wallach
The IRS Started Auditing 419 plans in the 1990s, and then continues going after 412(i) and other plans that they considered abusive, listed, or reportable transactions, or substantially similar to such transactions. If an IRS Audit disallows the 419 plan or the 412(i) plan, not only does the taxpayer lose the deduction and pay interest and penalties, but then the IRS comes back under IRC 6707A and imposes large Fines for not properly filing.
​ Insurance agents, financial planners and even accountants sold many of these plans. The main motivations for buying into one were large tax deductions. The motivation for the sellers of the plans was the very large life insurance premiums generated. These plans, which were vetted by the insurance companies, put lots of insurance on the books. Some of these plans continue to be sold, even after IRS disallowances and lawsuits against insurance agents, plan promoters, and insurance companies. To read more, click here. Lance Wallach benistar abuses life insurance p

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