An organization to help those harmed by the IRS Home ISSUES THIS CAN HAPPEN TO YOU. More Articles Contact Us 68 Keswick Lane Plainview NY 11803 us 5169385007 vebaplan@gmail.com HomeContact UsTHIS CAN HAPPEN TO YOU.More ArticlesISSUES IRS Audited plaintiffs' plan & concluded that the plan failed to comply with 412(i)(3) because it was "overfunded". The IRS audited plaintiffs’ plan and concluded that the plan failed to comply with § 412(i)(3) because it was “overfunded.”
The United States District Court for the Northern District of Texas recently issued several important decisions in MDL No. 1983, a multidistrict litigation proceeding designed to address claims related to employee benefit plans created under § 412(i) and § 419 of the Internal Revenue Code. For example, in two similar § 419 cases, the Court reaffirmed its earlier rulings and dismissed plaintiffs’ fraud-based claims with prejudice. The Court concluded that the allegations that plaintiffs were induced to establish § 419 plans based on allegedly fraudulent representations that the plans would be valid and subject to favorable future tax consequences were simply non‑actionable statements of opinion or predictions of future action. The Court explained that because plaintiffs could identify no law or IRS guidance that made plaintiffs’ § 419 plan illegal when the policies were sold, “any representations or omissions made … about the tax benefits or legality of the plans were notails to the business owner who was fined $400,000.
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HomeContact UsTHIS CAN HAPPEN TO YOU.More ArticlesISSUES
IRS Audited plaintiffs' plan & concluded that the plan failed to comply with 412(i)(3) because it was "overfunded".
The IRS audited plaintiffs’ plan
and concluded that the plan failed to comply with § 412(i)(3) because it was
“overfunded.”
The United States District Court for the Northern District of Texas recently
issued several important decisions in MDL No. 1983, a multidistrict
litigation proceeding designed to address claims related to employee
benefit plans created under § 412(i) and § 419 of the Internal Revenue Code. For
example, in two similar § 419 cases, the Court reaffirmed its earlier rulings and
dismissed plaintiffs’ fraud-based claims with prejudice. The Court concluded
that the allegations that plaintiffs were induced to establish § 419 plans based
on allegedly fraudulent representations that the plans would be valid and
subject to favorable future tax consequences were simply non‑actionable
statements of opinion or predictions of future action. The Court explained
that because plaintiffs could identify no law or IRS guidance that made
plaintiffs’ § 419 plan illegal when the policies were sold, “any representations
or omissions made … about the tax benefits or legality of the plans were notails to the business owner who was fined $400,000.