If you are considering a captive contact our experts. We provide an objective professional assessment.
By a CPA, MBA, EA with 37 years’ experience at the IRS
Lance Wallach Has Never Lost A case as an expert witness.
Understanding Captive Insurance Problems and IRS Audits
If you were using a Section 79 plan, 412(i) plan, or 419 plan and have received a notice that you are being audited by the IRS you may be subject to huge fines and penalties. Get help with this problem before the IRS takes all your money.
Contact Lance Wallach Today. Call 516-938-5007
We bring over 30 years of professional expert advice with our team of consulting CPA's, Attorneys and former IRS agents. We have experience providing expert witness testimony and other services for clients with captive insurance problems.
Don’t let someone do the disclosure form for you unless they are a CPA with years of experience successfully doing the disclosure forms. We also suggest the CPA that does the disclosure form be done by an Ex- IRS agent who has many years of tax experience.
If the captive refers you to someone for the forms, they are probably protecting THEMSELVES and NOT YOU.
You need someone who specializes with theses disclosure forms. We suggest that the CPA that prepares the form be totally independent from the captive. The most Important question to ask the CPA is how many disclosure forms have they properly prepared.
Remember you get what you pay for. If the forms are done cheaply, you will PAY a lot when the IRS gets you.
National Offices of Lance Wallach
Professional Benefits Trust PBI
Sea Nine VEBA
The Beta Plan
The Millennium Plan
The Ridge Plan
The Compass Welfare Benefit Plan
Section 79 Plans
The Grist Mill Trust
Other similar 412(i) retirement plans and 419 welfare benefit plans
As I have been warning for the last few years some captive insurance plans are being looked at and audited. If you are in a captive, which may be legal, you still may have to file under IRS 6707A. Most people who file do it wrong and then you have compounded the problem by lying to the IRS. Make one mistake on the forms and you have another problem.
On November 1, 2016, the Internal Revenue Service (“IRS”) issued Notice 2016-66 identifying certain transactions relating to small captive insurance companies as a “transaction of interest.” Prior to this notice, the IRS had identified certain small captives as amongst its list of “Dirty Dozen Tax Scams.” Also, the IRS has been actively examining captives and their owners and litigating cases in the U.S. Tax Court. The new “transaction of interest” designation throws small captive insurance company transactions into a tax reporting regime that can potentially lead to significant penalties and IRS income tax and promoter examinations..
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