IRS Criminal Investigation Department Audits Section 79, Captive Insurance, 412i and 419 Scams

IRS Criminal Investigation (CI) has developed a nationally coordinated program to combat these abusive tax schemes. CI's primary focus is on the identification and investigation of the tax scheme promoters as well as those who play a substantial or integral role in facilitating, aiding, assisting, or furthering the abusive tax scheme, such as accountants or lawyers. Just as important is the investigation of investors who knowingly participate in abusive tax schemes.

First the IRS started auditing § 419 plans in the 1990s, and then continued 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.

http://www.hg.org/article.asp?id=35505

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  1. Nationwide Support
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    Parts of this article are from the book published by John Wiley and Sons, Protecting Clients from Fraud, Incompetence and Scams

    Every financial expert out there knows that bad faith and bad planning can take down even the biggest firms, wiping out millions of dollars of value in an instant. Whether it's internal fraud, a scammer, or an incompetent planner that takes your client's cash, the bottom line is: The money is gone and the loss should have been prevented.

    Filled with authoritative advice from financial expert Lance Wallach, Protecting Clients from Fraud, Incompetence, and Scams equips you as an accountant, attorney, or financial planner with the weaponry you need to detect bad investments before they happen and protect your clients' wealth - as well as your own.

    Sharp and savvy in its frank, often humorous, and authoritative examination of financial fraud and mismanagement, you'll learn about the dysfunctional sectors in the financial industry and:

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    Asset protection basics
    Shifting the risk equation: insurance maneuvers
    Reevaluating existing insurance
    What financial advisers and insurance agents "forget" to tell their clients
    The truth about variable annuities
    What you must know about life settlements
    The smart way to approach college funding

    The news for the past two years has been filled with gloom and dangers: Swindles, Bernie Madoff, rip-offs, and the collapse of Bear Stearns and Lehman Brothers. But the party's over, and with that era done, it's more important than ever for you to perform the due diligence on all financial maneuvers affecting the money you oversee and provide your clients with assurance in the form of practical solutions for risk and asset management.
    HOME PUBLICATIONS ARTICLES MORE ARTICLES NEWS WHY DO I NEED YOU? CONTACT US ABOUT US
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  2. Nationwide Support
    516-938-5007


    Parts of this article are from the book published by John Wiley and Sons, Protecting Clients from Fraud, Incompetence and Scams

    Every financial expert out there knows that bad faith and bad planning can take down even the biggest firms, wiping out millions of dollars of value in an instant. Whether it's internal fraud, a scammer, or an incompetent planner that takes your client's cash, the bottom line is: The money is gone and the loss should have been prevented.

    Filled with authoritative advice from financial expert Lance Wallach, Protecting Clients from Fraud, Incompetence, and Scams equips you as an accountant, attorney, or financial planner with the weaponry you need to detect bad investments before they happen and protect your clients' wealth - as well as your own.

    Sharp and savvy in its frank, often humorous, and authoritative examination of financial fraud and mismanagement, you'll learn about the dysfunctional sectors in the financial industry and:

    Protecting your retirement assets
    Asset protection basics
    Shifting the risk equation: insurance maneuvers
    Reevaluating existing insurance
    What financial advisers and insurance agents "forget" to tell their clients
    The truth about variable annuities
    What you must know about life settlements
    The smart way to approach college funding

    The news for the past two years has been filled with gloom and dangers: Swindles, Bernie Madoff, rip-offs, and the collapse of Bear Stearns and Lehman Brothers. But the party's over, and with that era done, it's more important than ever for you to perform the due diligence on all financial maneuvers affecting the money you oversee and provide your clients with assurance in the form of practical solutions for risk and asset management.
    HOME PUBLICATIONS ARTICLES MORE ARTICLES NEWS WHY DO I NEED YOU? CONTACT US ABOUT US
    PreparerPenalties.com

    ReplyDelete