If you are considering a captive contact our experts. We provide an objective professional assessment.

  •  Structures Reviewed


  • Proposals Reviewed


  • IRS Audits Defended


 By a CPA, MBA, EA with 37 years’ experience at the IRS

 Lance Wallach Has Never Lost A case as an expert witness.

 

​IRS Alert!!! 


​​​On February 3, 2015, the IRS issued a release addressing "Abusive Tax Shelters on the IRS 'Dirty Dozen' List of Tax Scams for the 2015 Filing Season."

The release noted the following:

The IRS has been aware of the aggressive use of section 831(b) companies for some time: Reports in the trade press indicate that numerous audits of section 831(b) companies are ongoing.

 

 

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.

How IRS Audits Managers  Suspected Of Abusive Tax  Practices like Captive Insurance 


  • The managers being audited predominantly managed smallish “mini-captive” insurance companies, i.e., those which have made the 831(b) election which is available if they receive less than $1.2 million in premiums.
  • The managers being audited place the vast bulk, if not all, of their captives into so-called “risk pools” so as to provide at least 50% third-party insurance so as to meet risk diversification requirements, and those risk pools have had few if any significant claims.
  • Some of the managers have reputations in the captive industry as being sellers of “tax shelter captives”, which means that the captive is primarily being sold to clients as a tax-mitigation tool with only lip-service paid to the insurance and risk-management function of those entities (which is their true primary purpose, at least for real captives)

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CONTACT OUR NATIONAL OFFICE


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.

Captive Insurance Problem

IMPORTANT NOTICE

 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.

IRS AUDIT CAPTIVE INSURANCE PLANS!!!
 The IRS Listens to Lance Wallach!

National Offices of Lance Wallach
516-938-5007

516-935-7346

Audit Alert
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  • Sadi Trust

  • Professional Benefits Trust PBI 

  • Sea Nine VEBA 

  • Bisys

  • The Beta Plan 

  • The Millennium Plan 

  • Benistar

  • Niche 

  • The Ridge Plan 

  • The Compass Welfare Benefit Plan 

  • Section 79 Plans 

  • Captive Insurance 

  • 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..