Fast Pitch Networking

FAST PITCH NETWORKING

  Posted: Dec. 10

  By Lance Wallach

Here it is. 

Here is your proof of my predictions. Perhaps you didn't believe me when I told you the IRS was coming after what it has deemed "abusive transactions," but here it is, right from the IRS's own job posting. If you were involved with a 419e, 412i, listed transaction, abusive tax shelter, Section 79, or captive, and you haven't yet approached an expert for help with your situation, you had better do it now, before the notices start piling up on

your desk.

A portion of the exact announcement from the Department of the Treasury:

Job Title: INTERNAL REVENUE AGENT (ABUSIVE TRANSACTIONS GROUP)

Agency: Internal Revenue Service

Sub Agency: Internal Revenue Service

Job Announcement Number: 11PH1-SBB0058-0512-12/13

Who May Be Considered:

·        IRS employees on Career or Career Conditiona

l Appointments in the competitive service

·        Treasury Office of Chief Counsel employees on Career or Career Conditional Appointments or with prior competitive status

·        IRS employees on Term Appointments with potential conversion to a Career or Career Conditional Appointment in the same line of work

According to the job description, the agents of the Abusive Transactions Group will be conducting examinations of individuals, sole proprietorships, small corporations, partnerships an

d fiduciaries. They will be examining tax returns and will "determine the correct tax liability, and identify situations with potential for understated taxes."

These agents will work in the Small Business/Self Employed Business Division (SB/SE) which provides examinations for about 7 million small businesses and upwards of 33 million self-employed and supplemental income taxpayers. This group specifically goes after taxpayers who generally have higher incomes than most taxpayers, need to file more tax forms, and generally need to rely more on paid tax preparers." Their

examinations can contain "special audit features or anticipated accounting, tax law, or investigative issues," and look to make sure that, for example, specialty returns are filed properly.

The fines are severe. Under IRC 6707A, fines are up to $200,000 annually for not properly disclosing participation in a listed transaction. There was a moratorium on those fines until June 2010, pending new legislation to reduce them, but the new law virtually guarantees you will be fined. The fines had been $200,000 per year on the corporate level and $100,000 per year on the personal level. You got the fine even if you made no contributions for the year. All you had to do was to be in

the plan and fail to properly disclose your participation.

You can possibly still avoid all this by properly filing form 8886IMMEDIATELY with the IRS. Time is especially of the essence now. You MUST file before you are assessed the penalty. For months the Service has been holding off on actually collecting from people that they assessed because they did not know what Congress was going to do. But now they do know, so they are going to move aggressively to collection with people they have already assessed. There is no reason not to now. This is especially true because the new legislation still does not provide for a right of appeal or judicial review. The

Service is still judge, jury, and executioner. Its word is absolute as far as determining what is a listed transaction.

So you have to file form 8886 fast, but you also have to file it properly. The Service treats forms that are incorrectly filed as if they were never filed. You get fined for filing incorrectly, or for not filing at all. The Statute of Limitations does not begin unless you properly file. That means IRS can come back to get you any time in the future unless you file properly.

If you don't want these new IRS Agents, or any other IRS agents for that matter, to be earning their paychecks by coming after you, make sure you have done all you can to ensure that you have filed properly by reaching out for expert help today.

Serving Clients Nationwide

516-938-5007

Lance Wallach Expert Witness

Don't Get Caught in Section 79 Trap, One doctor almost lost everything....

Don’t Get Caught in Section 79 Trap
One doctor almost lost everything ………..

Don’t Get Caught in Section 79 Trap
One doctor almost lost everything ………..




In 2006 Doctor X found himself in what he thought was 
the pleasant position of having a substantial amount of 
cash on hand that was not essential to the operation of 
his practice. That comfortable feeling did not last long. 
He quickly fell prey to a predatory insurance agent who 
sold him on the idea of Section 79 scam as a vehicle to 
obtain tax deductions. Of course what really interested 
the insurance agent was the funding vehicle, a large 
life insurance contract with American General as the 
insurance carrier, which just happened to net the 
agent a large commission.


Unfortunately, the large, questionable tax deductions 
claimed by Doctor X indeed attracted the attention of 
the IRS. As a result of their audit, the IRS not only 
disallowed all of the tax deductions, but also imposed 
back taxes, an array of penalties, and interest, turning 
the doctor’s anticipated investment vehicle into 
something that could cost him everything he was 
saving and more. As if that weren’t bad enough, even 
that Draconian action was not the end of the story.


None of his so-called financial advisors had told Doctor 
X about IRC Section 6707A. Under this section of the 
Code, huge fines can be imposed on those who fail to 
inform the Service about participation in listed or 
reportable transactions, or transactions substantially 
similar to listed transactions. Loosely defined, a 
reportable transaction is any transaction that has the 
potential for tax avoidance or evasion. Since he had no 
knowledge of this requirement, the doctor did not make 
the proper filings under Section 6707A, and is now 
also being threatened with monstrous fines for that 
failure to submit the proper forms in the proper format.


Although these issues had the potential for great 
disaster and great financial loss for this doctor, all the 
anxiety and stress he has been suffering over this 
matter may soon have a happier ending than he 
expected at its onset because he had the sense to 
contact us for help, perhaps just in the nick of time. As 
a result of putting experts with a great deal of 
experience on his case, he now stands an excellent 
chance of having at least some of the penalties from 
the original audit abated. He will probably be able to 
recover the money that he sank into that large 
American General life insurance contract as well. 
Sometimes a properly worded letter to the insurance 
company is all it takes. Last, but certainly not least, 
Doctor X also has an excellent chance of avoiding the 
large Section 6707A penalties, as our experts in the art 
of filing late without paying fines are currently at work 
on that as well.


The information provided herein is not intended as 
legal, accounting, financial or any type of advice for 
any specific individual or other entity. You should 
contact an appropriate professional for any such 
advice.




Serving Clients Nationwide


516-938-5007


Lance Wallach Expert Witness