|Lance Wallach Expert Witness|
|Late Breaking News:|
|IRS Audits Focus on Captive Insurance Plans
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.
|Lance Wallach and Ira Kaplan, ESQ|