Showing posts with label Tax. Show all posts
Showing posts with label Tax. Show all posts

IRS Facts and Issues

Facts

There is no such thing as a hopeless tax case. Citizens really have so many rights, if you know just a few of them you will never pay taxes, interest or IRS penalties you don't owe."

If you are presently embroiled in IRS conflict and need word of encouragement, then read the following...

FACT ONE:

Last year the IRS cancelled 4.9 million penalties, saving taxpayers $11.13 billion in penalties they didn't owe..

FACT TWO:

When properly challenged, the IRS cancels 60 cents of every dollar assessed in employment tax penalties.

FACT THREE:

There are four IRS approved programs of tax debt forgiveness.

FACT FOUR:

The IRS settles delinquent tax debt for between 10 to 20 cents on the dollar when a proper request is made for tax debt forgiveness.

FACT FIVE:

By asserting the right to a correspondence audit, the average tax audit bill was reduced by as much as 58%.

FACT SIX:

Last year, millions of citizens won installment agreements, thus avoiding wage and bank levies and property seizures.

FACT SEVEN:

IRS auditors have NO POWER to change your tax liability without YOUR approval.

IRS ISSUES 

Much has been made of recent restructuring legislation pointed at ending IRS errors and abuse. Historically, such legislation has had little impact on the agency. The reason is the IRS simply does not tell the truth about taxpayers' rights. Consequently, if you do not understand your rights in a given situation, you cannot expect the IRS to explain them. For example, when was the last time you received a kind letter from the IRS explaining that you paid too much in taxes or overlooked certain rights that might cut your bill? Such letters are rare indeed!

On the other hand, millions of citizen are confronted by the agency for alleged legal failings. Each year the IRS...
  • issues some one hundred million computer notices affecting nearly $200 billion in accounts;
  • issues over thirty-four million penalties against individuals and businesses;
  • executes over four million wage and bank levies;
  • files about four million general tax liens;
  • seizes tens of thousands of businesses, autos, homes, and other property, and audits nearly 2 million business and personal income tax returns.
Nearly everybody has gone through some kind of IRS enforcement difficulty and we all know somebody who is going through it now. But few have effective solutions. Too often, professional advice from tax accountants is, "well, it's the IRS. You just have to pay." Unfortunately, precious few take the time to understand that there are solutions to every IRS problem. Indeed, there is no such thing as a hopeless tax case. There is always a way to solve the problem.

For many people, this Problem Solver provides an immediate solution to a pressing IRS problem. Simple solutions are provided to problems such as wage and bank levies, IRS computer notices and penalty assessments. In other cases, this Problem Solver serves as a guide to what you must do to ultimately solve your problem. And even if you owe taxes, penalties and interest you cannot pay, you can be forgiven of all or part of your debt.

Because the IRS resists directing you to solutions to most tax problems (especially the problem of excessive tax debt) this IRS Common Problems Solver is designed to fill that void. It describes numerous taxpayer rights and remedies and shows you the steps to take to determine which solution best suits your situation. In addition, you will be introduced to an array of affordable, effective self-help materials and services to help you end your problem.

Too often, the biggest IRS problem for millions of people is the fact that it costs more to fight the agency than it does to just pay the tax. For those who cannot pay the tax or afford professional help, they live only with the promise of life-long indebtedness to the IRS--a hopeless situation. Now there is a solution. 

Now, at last, the price of tax freedom is not out of reach for anyone. However, the IRS is always working to close the door to freedom that we have worked so hard to open and expose. The IRS is always working behind the scenes to limit your rights thereby ensuring you are always a slave to tax debt. Therefore, if you have a tax problem, now is the time to address it. It only gets worse as time goes on. As you read this Problem Solver, draw encouragement from the testimonials found throughout the text and act now to solve your problem once and for all.


You may have read about how the IRS gives problems to political organizations. That is nothing compared to the honest hard working people that the IRS will, or has already harmed. To read more, click the link below.

Or contact Lance Wallach for more information at a convenient time for you at 5169385007 or at vebaplan@gmail.com

How to Find the Right Experts to Guide You Through These Times

How to Find the Right Experts to Guide You Through These Times

IRS Tax Help

IRS Tax Help

Tax Related Articles: Tax Audits, Listed Transactions, IRS Fines

Tax Related Articles: Tax Audits, Listed Transactions, IRS Fines

HAVE YOU BEEN THE VICTIM OF THE SALE OF ABUSIVE LIFE INSURANCE AND ANNUITY PRODUCTS SOLD AS PART OF A PENSION PLAN OR RETIREMENT PLAN?

Abusive Tax Shelters, Insurance and Annuity Product Fraud Lawsuit
RECOVER YOUR LOSSES FROM LIFE INSURANCE 412 (i) AND ANNUITY PRODUCTS SOLD AS PART OF A PENSION PLAN OR RETIREMENT PLAN
Insurance and Annuity Product Fraud Lawsuit
Life Insurance Companies and their Agents have been selling abusive life insurance and annuity products.  Many pension plans have been promoted as legitimate retirement plans which contain various life insurance products and annuities.  Unfortunately the Internal Revenue Service (“IRS”) has now attacked many of these pension and retirement plans and is conducting audits to demand payment for taxes, penalties and interest and attempting to disqualify many plans.
If you are an accountant, business owner, corporate officer, dentist, doctor, professional athlete, professional or corporation of high net worth, you were unscrupulously targeted by life insurance companies and their agents to purchase a 412i defined benefit pension plan. You were chosen to purchase a 412i plan because you have the net worth to pay for it.
Our investigation has disclosed that many life insurance companies, promoters, attorneys,
and accountants promoted and sold these plans, including but not limited to the following:
•  American General Life Insurance Company
•  Guardian Life Insurance Company
•  Hartford Life and Annuity Insurance Company
•  Indianapolis Life Insurance Company
•  Pacific Life Insurance Company
•  Pension Services, LLC
•  Many Other Life Insurance Companies and Agents
The individuals and groups above devised a scheme to sell abusive tax shelters under the auspices of Section 412(i) of the tax code. A 412(i) is a defined benefit pension plan. It provides specific retirement benefits to participants once they reach retirement and must contain assets sufficient to pay those benefits. A 412(i) plan differs from other defined benefit pension plans in that it must be funded exclusively by the purchase of individual life insurance products. To create a 412(i) plan, there must
be a trust to hold the assets. The employer funds the plan by making cash contributions to the trust, and the Code allows the employer to take a tax deduction in the amount of the contributions, i.e. the entire amount.
The trust uses the contributed funds to purchase some combination of life insurance products (insurance or annuities) for the plan. As the plan participants retire, the trust will usually sell the policies for their present cash value and purchase annuities with the proceeds. The revenue stream from the annuities pays the specified retirement benefit to plan participants.
These defendants (with the aid and knowledge of the insurance companies) used the traditional structure and sold life insurance policies with excessively high premiums. The trust then uses the large cash contributions to pay high insurance premiums and the employer takes a deduction for the sum of those large contributions. As you might expect, these policies were designed with excessively high fees or “loads” which provided exorbitant commissions to the insurance companies and the agents who sold the products.
The policies that were sold were termed Springing Cash Value Policies. They had little or no cash value for the first 5-7 years, after which they had significant cash value. Under this scheme, after 5-7 years, and just before the cash value sprung, the participant typically purchases the policy from the trust for the policy’s surrender value. In theory, you have a tax free transaction.
The IRS does not recognize the tax benefit of such a plan and has repeatedly issued announcements indicating that such plans are contrary to federal tax laws and regulations.
Have you received a letter from the IRS either (1) informing you of an upcoming audit of your plan or (2) demanding payment for substantial tax “penalties and interest”? The “tax free” benefit pension plan you purchased might be a scam, a fraud.  Please allow us to speak with you and review your documentation to help you to determine your best course of action.  Your communications will be treated with the strictest attorney-client confidence.
If you were a victim of such a sale of a 412i or 419 plan, we encourage you to contact us immediately .  You may also receive a free initial consultation by telephone at 516 9357346  If you desire a free initial phone consultation please leave a specific time or time period within which to contact you.
Since you have already expanded a substantial amount of money in your pension plan and believed it was a legitimate retirement plan, you are obviously shocked to now learn that major life insurance companies and their agents may have sold you improper retirement plans simply to generate enormous commissions on life insurance and annuities. www.taxaudit419 and www.vebaplan.com have more information.
We also help with abusive tax shelters like 419 welfare benefit plans. In 2002 Lance Wallach wrote to Hartford and other insurance companies telling them that IRS will be increasing 419 audits and law firms would be suing them. What did Hartford do? They sent out some emails to others including their compliance department and continued to sell 419 plans. Give us a call if you want a copy of this.

Lance Wallach CHFC : Using Captive Insurance Companies for Savings

Lance Wallach CHFC : Using Captive Insurance Companies for Savings

401K.TAX | 516-935-7346

401K.TAX | 516-935-7346

Examples of Abusive Tax Schemes - Fiscal Year 2011

Two Men Sentenced for Investment Fraud
On June 9, 2011, in Minneapolis, Minn., Mark S. Sutton, of Minnetonka, was sentenced to 42 months in prison on one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to defraud the U.S. On November 17, 2009, Sutton was indicted along with Joseph L. Finney, of Colorado Springs, Colorado. Finney, who pleaded guilty on September 24, 2010, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering, was sentenced to 64 months in prison. Court documents indicate that from approximately 2000 to 2005, Sutton, Finney, and others sold shares in an investment called Envestclub, which they marketed as providing returns far greater than run-of-the-mill investments. The defendants failed to inform potential investors of important information, including that they took some investor funds as sales “commissions” and that Finney was convicted of fraud in federal court in 2003. In the present case, Sutton also was convicted of conspiring with a Plymouth, Minnesota, man to evade payment of that man’s federal income taxes for 1991 and 1992. Trial evidence proved that Sutton helped create a trust into which property was placed for the purpose of evading taxes. Moreover, he referred his co-conspirator to individuals who specialized in tax avoidance schemes.

New Jersey UBS Client Sentenced for Failing to Report More Than $1 Million in Swiss Bank Account
On May 24, 2011, in Newark, N.J., Harry Abrahamsen, of Oradell, New Jersey, was sentenced to three years probation, including 12 months of home confinement with electronic monitoring, after admitting he failed to file a Report of Foreign Bank and Financial Accounts (FBAR), concealing more than $1 million in Swiss bank accounts. Abrahamsen was also ordered to pay back taxes, interest and penalties totaling more than $600,000 and as a condition of his guilty plea, agreed to pay an FBAR penalty in excess of $300,000. At his plea hearing, Abrahamsen admitted that he failed to file an FBAR for calendar year 2005 in addition to failing to report his account at UBS AG in Switzerland on his individual income tax return for that year, and failed to report a second account opened in the name of Lucille Abrahamsen Jackson, his daughter. The UBS accounts, originally opened in 1992, were transferred into the name of Primrose Properties S.A., a nominee Panamanian corporation, in 2000. Abrahamsen established Primrose in early 2000 in order to hide these accounts from the Internal Revenue Service (IRS). Abrahamsen also admitted that he funded the UBS accounts with approximately $1.3 million in false and inflated expenses paid by his pre-press printing business, SJT Imaging Inc., to a Swiss company. The inflated expenses were then deducted on SJT Imaging Inc.’s corporate tax returns, which allowed Abrahamsen to under report personal income for the years 1999 through 2003. Jackson pleaded guilty on November 18, 2010, to an Information charging her with willfully subscribing to a false tax return and was sentenced on May 23, 2011, to a year of probation.

Owner of Tradex Sentenced for Concealing Income in Foreign Shell Companies and Overseas Bank Accounts
On May 4, 2011, in Los Angeles, Calif., Arthur Allen Ferdig, owner of Tradex, a foreign exchange investment company, was sentenced to 18 months in prison and three years of supervised release. Ferdig pleaded guilty on September 28, 2010, to tax evasion for the 2002 tax year. In addition, Ferdig agreed to pay taxes owed for 2002, inclusive of the civil fraud penalty and statutory interest. According to the plea agreement, during 2002 and 2003, Ferdig, a U.S. citizen, lived in Jamaica and the Bahamas where he owned and controlled Tradex, a purported foreign exchange investment company based in the Caribbean island of Dominica. To conceal and disguise his income from Tradex, Ferdig admitted that he knowingly and intentionally failed to file a U.S. tax return for 2002, directing his income from Tradex to be wired into offshore bank accounts that were held in the names of various shell companies under his control, including Industrial Metals and Mining, a mining venture in Nevada. According to court documents, Ferdig admitted that he failed to report as income approximately $529,000, resulting in tax due of approximately $148,000 to the Internal Revenue Service.
Michigan Chiropractor Sent to Prison for Tax Evasion
On Tuesday, May 3, 2011, in Grand Rapids, Mich., Kerry Thomas Kilpatrick was sentenced to 24 months in prison and two years of supervised release for tax evasion. Kilpatrick was also ordered to cooperate with the IRS and pay restitution of $85,014 for taxes owed in 2002. In his plea agreement, Kilpatrick admitted that he evaded paying taxes for income he earned as the self-employed owner of the Kilpatrick Chiropractic Life Center in Grand Rapids for the 2002 tax year. He also acknowledged that he did not pay federal income taxes on income earned from 1999-2007. According to court records, during 1999 through 2007, Kilpatrick paid himself through direct payments from his business credit union account without including any withholdings for state or federal payroll taxes. Kilpatrick also used the business credit union account to directly pay his home mortgage, along with other personal expenditures. During 2001 through 2002, Kilpatrick formed numerous holding companies, corporations, and enterprises that lacked any economic substance and were located in Nevada, Oregon, and the Republic of Panama. He used the entities to evade his income taxes, pay local property taxes on his real estate, and to hold the title on his 1999 Ford Expedition, $63,000 Tiffin Motor Home, and other property.

International Businessman Sentenced for Filing False TaxReturns and Failing to File FBARs

On March 29, 2011, in South Bend, Ind., James A. Simon was sentenced to 72 months in prison, followed by three years of supervised release and ordered to pay $886,901 in restitution to the Internal Revenue Service (IRS). Simon was convicted at trial of filing false federal income tax returns, failure to file reports of foreign bank and financial accounts, mail fraud involving private financial aid, and fraud involving federal financial aid. According to court documents, from 2003 to 2006, Simon received money from five business entities with which he was affiliated. He did not report the funds received from these entities on his federal tax returns and failed to report a total of over $3.1 million to the IRS. Simon also did not disclose that he had an interest in foreign bank accounts and did not file required Report of Foreign Bank and Financial Accounts (FBARs) with the Treasury Department regarding the foreign accounts. Further, Simon provided false information regarding his family’s income and expenses on applications for private financial aid to two different schools and on applications for federal financial aid to one college. He will also pay restitution of $48,070 to the Department of Education, $17,000 to Canterbury School, and $101,600 to Culver Academy.