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What are 412(i) Plans and what are the problems with these plans | Why You Should Not Own Mutual Funds

What are 412(i) Plans and what are the problems with these plans | Why You Should Not Own Mutual Funds

1 comment:

  1. Every few years, individuals in the insurance industry
    conceive new tax-planning strategies that involve the sale
    olli~e. insurance. Frequently, the theories allOWing the tax
    treatmea! sought by the promoters are tenuous, and often the more insurance-particularly on the business owners-than
    is permissible under those incidental death benefit limita­
    tions. This possible misuse ofSection 4/2(0 plans caused
    the IRS to categorize some 412(i) plans as "listed transac­
    tions, " which require reporting to the IRS. Naiue taxpayers
    not reporting these listed transactions are now subject to
    horrendous perzafties. This month we discuss the impact
    of not reporting a 412(i) plan viewed by the IRS as a listed
    transaction with Roberta Casper Watson, a partner and
    head of the ERiSA Practice Group in the Tampa and
    St. Petersburg law firm of Trenam Kemker. She can be
    reached at rcwatson@trenam.com or 813-227-7474.
    A
    QWhat is the IRS focus on 4]2@ plans and
    reporting as a listed transaction?
    Let me first say that 412(i) plans are not always l

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