RPT IRS is looking. Published on January 4, 2017 LikeRPT IRS is looking.1Comment1ShareShare RPT IRS is looking.1 Stacey Arenas Stacey Arenas Assistant Managing Director, Marketing Manager at Vebaplan LLC This was told to me by someone else. What I do know is file IRS 8886 to reduce audit taxes before the IRS comes.
I was sitting in my office bored, which is what plan administration work will do to anyone, when the phone rang from our home office in Salt Lake City. The president of our company had a producer with him that had a client who was looking at a fully insured pension under 412 (e)(3) or a restrictive property trust.
Give it 3/5 Give it 4/5 Give it 5/5 The appeals court for the seventh circuit has affirmed the convictions of six defendants who conspired to defraud the United States by impeding and impairing the functions of the Internal Revenue Service ("IRS") and committed offenses against the United States, along with related fraud and tax offenses that included the marketing of charitable trusts that could be marketed to customers as a means of both estate planning and income tax minimization.
Citation: United States v. Michael A. Vallone et al.; Nos. 08-3690, 08-3759, 08-4076, 08-4246, 08-4320, 09-1864, 09-2174
Full Text:
UNITED STATES OF AMERICA, Plaintiff-Appellee, v. MICHAEL A. VALLONE, WILLIAM S. COVER, MICHAEL T. DOWD, ROBERT W. HOPPER, TIMOTHY S. DUNN, AND EDWARD BARTOLI, Defendants-Appellants.
IN THE UNITED STATES COURT OF APPEALS FOR THE SEVENTH CIRCUIT
RPT , Captive insurance and other audit targets Published on January 4, 2017 LikeRPT , Captive insurance and other audit targets1Comment6ShareShare RPT , Captive insurance and other audit targets1tective Filing on or before January 31, 2017.
Some of the Section 419 Welfare Benefit Plans: NOVA Benefit Plans (run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others Benistar Plans (also run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others) Greater Metropolitan Sterling Benefit Plan (run by Ronald Snyder) Millenium Plans CJA & Associates (run by Raymond Ankner) Sea Nine VEBA Compass Welfare Benefit Plan Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others) Restricted Property Trust (RPT) (run by Ken Crabb)
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
What confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
Before you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
Companies who set up IRS Code Section 419 Welfare Benefit Plans that were funded by life insurance are finding they've got big problems. Although insurance agents told business owners that their contributions would be tax deductible, they're actually reportable transactions – which has left many companies owing taxes they simply can't pay. What is a 419 welfare benefit plan?
A welfare benefit plan is effectively a corporate-sponsored insurance plan, according to Steve Burgess, an insurance expert on 412(i) pension and 419 welfare benefit plans. He explained, “A corporation sets up a trust to provide insurance benefits for its employees. That’s the basic concept behind it. The corporation's contributions into the trust are tax-deductible and many of these plans allow you to pick and choose which employees you want involved in the plan.”
Abuses with plans funded with life insurance
Burgess says that while not all of these plans bad, the ones that are bad are very abusive – and those generally happen with plans that are funded with life insurance and that are commission-driven. He told us:
Basically what happens is that an insurance agent comes to a business owner and says, 'Hey, I can put this plan in place for you. You can make contributions to it. I’ll set it up so that your money goes into this nice life insurance policy and it will all be tax-deductible to you. Then at some point in the future, you can borrow the money back and not pay any taxes on it.' What people don't realize is that, again, like 412(i) plans (link to article entitled 412(i) Pension Plan Fraud: Schemes Motivated By Big Insurance Commissions), many of these plans are reportable transactions to the IRS and that they’re not always compliant with how a welfare benefit plan is supposed to be set up. They get audited by the IRS who tells them they're not going to allow it and that they're going to have to restate the income and pay taxes on it.
Read more: http://employment-law.freeadvice.com/employment-law/pensions_benefits/big-problems-with-419-welfare-benefit-plans-funded-by-life-insurance.htm#ixzz4W8dQmSo0 Under Creative Commons License: Attributionon Facebook
Companies who set up IRS Code Section 419 Welfare Benefit Plans that were funded by life insurance are finding they've got big problems. Although insurance agents told business owners that their contributions would be tax deductible, they're actually reportable transactions – which has left many companies owing taxes they simply can't pay. What is a 419 welfare benefit plan?
A welfare benefit plan is effectively a corporate-sponsored insurance plan, according to Steve Burgess, an insurance expert on 412(i) pension and 419 welfare benefit plans. He explained, “A corporation sets up a trust to provide insurance benefits for its employees. That’s the basic concept behind it. The corporation's contributions into the trust are tax-deductible and many of these plans allow you to pick and choose which employees you want involved in the plan.”
Abuses with plans funded with life insurance
Burgess says that while not all of these plans bad, the ones that are bad are very abusive – and those generally happen with plans that are funded with life insurance and that are commission-driven. He told us:
Basically what happens is that an insurance agent comes to a business owner and says, 'Hey, I can put this plan in place for you. You can make contributions to it. I’ll set it up so that your money goes into this nice life insurance policy and it will all be tax-deductible to you. Then at some point in the future, you can borrow the money back and not pay any taxes on it.' What people don't realize is that, again, like 412(i) plans (link to article entitled 412(i) Pension Plan Fraud: Schemes Motivated By Big Insurance Commissions), many of these plans are reportable transactions to the IRS and that they’re not always compliant with how a welfare benefit plan is supposed to be set up. They get audited by the IRS who tells them they're not going to allow it and that they're going to have to restate the income and pay taxes on it.
Read more: http://employment-law.freeadvice.com/employment-law/pensions_benefits/big-problems-with-419-welfare-benefit-plans-funded-by-life-insurance.htm#ixzz4W8dQmSo0 Under Creative Commons License: Attribution Follow us: @FreeAdviceNews on Twitter | freeadvice on Facebook
KMJ Radio Lance 3 412i and 419e plans litigation. IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
What confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
Every Accountant and Attorney Should Read This Book Honey, I forgot to duck … — World Heavyweight Champion Jack Dempsey after losing the heavyweids. Business survival may be at stake.
Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR, and captive insurance plans. He speaks at more than ten conventions annually. Mr. Wallach writes for over fifty publications including AICPA Planner, Accounting Today, CPA Journal, National Public Accountant, Enrolled Agents Journal, Financial Planning, Registered Representative, Tax Practitioners Journal, Connecticut Law Tribune, Barrister, CPA/Law Forum, Employee Benefit News, Health Underwriter, Advisor and the American Medical Association News. Mr. Wallach teaches accountants how to increase their clientele. Wallach has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and his side has never lost a case. Visit Taxaudit419.com, Vebaplan.org and Taxadvisorexpert.com.
Restricted Property Trusts Protect Yourself From IRS Audits HOME FILE FORM 8886 TODAY CONTACT US Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today! Need Help? Contact Us Today!
Restricted Property Trusts Protect Yourself From IRS Audits HOME FILE FORM 8886 TODAY CONTACT US Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today! Need Help? Contact Us Today!
Restricted Property Trusts Protect Yourself From IRS Audits HOME FILE FORM 8886 TODAY CONTACT US Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today! Need Help? Contact Us Today!
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
why you pay to much tax, 6477 views, 69 likes Edit article Published on February 3, 2017 Likewhy you pay to much tax, 6477 views, 69 likes0Comment0ShareShare why you pay to much tax, 6477 views, 69 likes0 Lance Wallach Lance Wallach Business Owner at National Offices of Lance Wallach I have a CPA and an Attorney. Why do I need you?
Lance Wallach
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
Before you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
Before you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
understand the mechanics and legal issues surrounding what has become known as “419 Plans,” welfare benefit plans often used by small companies and funded with life insurance. For that reason taxpayers throughout the country seek his services in dealing with the Internal Revenue Service in audits, appeals and in the Tax Court.
We can help you deal with: audits, appeals and Tax Court issues involving 419 Plan deductions and the taxation of withdrawals listed transaction issues including filing Form 8886 and fighting the section 6707A and section 6662A penalties See also: Captive Insurance Companies, 419 Plan Expert Witness and Life Insurance Trustee Risk Management. Picture Some of the Section 419 Welfare Benefit Plans: NOVA Benefit Plans (run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others Benistar Plans (also run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others) Greater Metropolitan Sterling Benefit Plan (run by Ronald Snyder) Millenium Plans CJA & Associates (run by Raymond Ankner) Sea Nine VEBA Compass Welfare Benefit Plan Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others) Restricted Property Trust (RPT) (run by Ken Crabb)
+1 516.938.5007lance@expertwitness.taxNationwide - U.S.A Restricted Property Trusts Protect Yourself From IRS Audits HOME FILE FORM 8886 TODAY CONTACT US Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today! Need Help? Contact Us Today!
The Restricted Property Trust is technically classified as a Welfare Benefit Plan. Welfare Benefit Plans are definitely nothing new. They actually date back to 1928, and come in many different names and forms.
There are currently 34 US States that use some form of a Welfare Benefit Plan for their State employees. What most people don’t know is that, ALL Welfare Benefit Plans must be related and/or associated to an actual welfare situation, such as death, disability, or disease.
Now the bad news is that, The Restrictive Property Trust is just a new-model 419-SCAM. The problem is that it’s a SCAM and nothing more.
In conjunction with Section 83, The Restrictive Property Trust makes the insurance tax-deductible going-in and tax-free coming-out, of course with some minor modifications.
Of course there is no such thing as a The Restrictive Property Trust in the Internal Revenue Code. The plan promoter claims a patent, etc., but in reality, tax-strategy patents were completely out-lawed sometime in 2011. Is his patent from the 90’s?
The downside of The Restrictive Property Trust is that the IRS requires a substantial risk of forfeiture because of no reason other than the fact that it is just another scam.
If you want to lose your money, put it in The Restrictive Property Trust. Shortly after the participants get audited they usually sue the salesman and insurance company. The promoters claim that they have a legal opinion. The IRS does not care and disallows the deduction.
some value, but certainly this should be done with caution. Beware overpricing of services. In addition to the formation fee, management fee, and a percentage of the life insurance commissions, some promoters will also charge a percentage of deposits and a fee for using a shared risk pool. These fees are not commonly charged within the captive industry and may be considered excessive.
The life insurance community has a long and tortured history of seeking the Holy Grail of insurance schemes: the tax-deductible life insurance premium. Nearly every year around tax planning season, life insurance agents attempt to boost year-end sales by offering some kind of tax-deductible premium plan — the newest of which is the small business Captive Insurance Company (“CIC”) as an investor in life insurance. In this transaction, a small business deducts premium payments for business risks to an IRC § 831(b) CIC; the CIC is permitted to receive up to $1.2 million of premium income tax-free; and the CIC uses a substantial amount of the tax-free premium immediately to purchase life insurance on the small business owners who often also own the CIC. The Internal Revenue Service (“IRS”) already loses a substantial amount of otherwise collectible tax revenue due to the existing tax-breaks afforded life insurance policyholders, such as tax-free internal build-up inside life insurance policies and the receipt of policy proceeds tax-free at the death of the insured. Therefore, the IRS has historically staunchly defended the loss of additional life insurance-oriented tax revenue that may derive from tax-deductible life insurance premiums. In furtherance of this defense, the IRS has brought cases against individual taxpayers and promoters, designated certain abusive life insurance arrangements as listed transactions, and imposed accuracy-related taxpayer penalties.
Captive Insurance companies, are sometimes used to purchase life insurance outside the estate of the business owner with what amounts to pre-tax dollars. This should not be the primary focus of the captive, but is something that can be done with a portion of the captive's accumulated assets. If the primary purpose of the captive is to buy life insurance, or act as the conduit for the pre-tax purchase for life insurance, or if life insurance becomes the significant asset of the captive, there is a risk that the arrangement will not be considered a bona fide captive arrangement but will instead be treated as a tax shelter. A captive is an insurance company, and should be treated as such, not a vehicle for investing.
Our Services How we can help
Litigation Consulting Case Evaluation Evidence Review and Forensic Analysis Research and analysis of tax and insurance laws Complaint, Petition, and Response Preparation Expert Witness Testimony Damage Calculations Expert Declarations and Affidavits Exhibits for Settlement Conference, Mediation, and Trial Active Litigation: Rebuttal Witness Deposition, Arbitration and Trial Testimony Plan reviews, evaluations and remediation And more, as needed
an expert can make a difference with any captive insurance problem HOW TO FIND THE RIGHT EXPERT TO GUIDE YOU THROUGH THESE TIMES
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Is your insurance company still in business? Will it be in business tomorrow? Are you still working with your insurance agent financial planner, stock broker etc. who put you into this situation? Are you going to do anything about your situation? If you are like most people you will sell stuff and lose money, or do nothing while you lose more, your bank and insurance company goes out of business and your retirement plan savings disappears. It does
All you wanted was a comfortable retirement. What you got was fraud, incompetence, and scams. Fortunately, Lance Wallach and his team are here to help you protect your assets and keep the IRS out of your pockets!
Remember, many advisory firms offer financial planning, insurance, and investment services, but the difference is that Lance Wallach wrote the books on life insurance as well as financial and estate planning that the other consultants learned from!
If you want to sleep soundly at night, don't go to the students for your financial solutions, go to the one who teaches them - Lance Wallach!
All you wanted was a comfortable retirement. What you got was fraud, incompetence, and scams. Fortunately, Lance Wallach and his team are here to help you protect your assets and keep the IRS out of your pockets!
Remember, many advisory firms offer financial planning, insurance, and investment services, but the difference is that Lance Wallach wrote the books on life insurance as well as financial and estate planning that the other consultants learned from!
If you want to sleep soundly at night, don't go to the students for your financial solutions, go to the one who teaches them - Lance Wallach!
How is the IRS Handling Cryptocurrency Transactions? The first page of IRS Form 1040 asks if at any time during the year you received, sold, or exchanged, or otherwise disposed of any financial interest in any virtual currency. If you have any taxable transactions, you should check “Yes.” If you have a nontaxable transaction – just buying Bitcoin or another cryptocurrency – you should check “No.”
Reporting Taxable Transactions According to IRS Notice 2014-21, the IRS considers cryptocurrency as property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary. As a result, the most common crypto transactions that you do need to report on your tax return include:
Selling your Bitcoin or other crypto for cash Trading one cryptocurrency for another cryptocurrency Buying goods and services with your cryptocurrency In addition to reporting your capital gains and losses, you may need to report certain transactions as ordinary income, including:
Receiving airdropped tokens Receiving tokens as a result of a hard fork Staking cryptocurrency Yield farming and Liquidity Mining Referral bonuses
How is the IRS Handling Cryptocurrency Transactions? The first page of IRS Form 1040 asks if at any time during the year you received, sold, or exchanged, or otherwise disposed of any financial interest in any virtual currency. If you have any taxable transactions, you should check “Yes.” If you have a nontaxable transaction – just buying Bitcoin or another cryptocurrency – you should check “No.”
Reporting Taxable Transactions According to IRS Notice 2014-21, the IRS considers cryptocurrency as property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary. As a result, the most common crypto transactions that you do need to report on your tax return include:
Selling your Bitcoin or other crypto for cash Trading one cryptocurrency for another cryptocurrency Buying goods and services with your cryptocurrency In addition to reporting your capital gains and losses, you may need to report certain transactions as ordinary income, including:
Receiving airdropped tokens Receiving tokens as a result of a hard fork Staking cryptocurrency Yield farming and Liquidity Mining Referral bonuses
RPT IRS is looking.
ReplyDeletePublished on January 4, 2017
LikeRPT IRS is looking.1Comment1ShareShare RPT IRS is looking.1
Stacey Arenas
Stacey Arenas
Assistant Managing Director, Marketing Manager at Vebaplan LLC
This was told to me by someone else. What I do know is file IRS 8886 to reduce audit taxes before the IRS comes.
I was sitting in my office bored, which is what plan administration work will do to anyone, when the phone rang from our home office in Salt Lake City. The president of our company had a producer with him that had a client who was looking at a fully insured pension under 412 (e)(3) or a restrictive property trust.
"What?" I asked.
ReplyDeleteGive it 3/5
Give it 4/5
Give it 5/5
The appeals court for the seventh circuit has affirmed the convictions of six defendants who conspired to defraud the United States by impeding and impairing the functions of the Internal Revenue Service ("IRS") and committed offenses against the United States, along with related fraud and tax offenses that included the marketing of charitable trusts that could be marketed to customers as a means of both estate planning and income tax minimization.
Citation: United States v. Michael A. Vallone et al.; Nos. 08-3690, 08-3759, 08-4076, 08-4246, 08-4320, 09-1864, 09-2174
Full Text:
UNITED STATES OF AMERICA,
Plaintiff-Appellee,
v.
MICHAEL A. VALLONE, WILLIAM S. COVER, MICHAEL T. DOWD,
ROBERT W. HOPPER, TIMOTHY S. DUNN, AND EDWARD BARTOLI,
Defendants-Appellants.
IN THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT
RPT , Captive insurance and other audit targets
ReplyDeletePublished on January 4, 2017
LikeRPT , Captive insurance and other audit targets1Comment6ShareShare RPT , Captive insurance and other audit targets1tective Filing on or before January 31, 2017.
Some of the Section 419 Welfare Benefit Plans:
ReplyDeleteNOVA Benefit Plans (run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others
Benistar Plans (also run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others)
Greater Metropolitan
Sterling Benefit Plan (run by Ronald Snyder)
Millenium Plans
CJA & Associates (run by Raymond Ankner)
Sea Nine VEBA
Compass Welfare Benefit Plan
Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others)
Restricted Property Trust (RPT) (run by Ken Crabb)
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
ReplyDeleteWhat confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
ReplyDeleteBefore you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
tax shelter audits
ReplyDeletePublished on December 29, 2016
Liketax shelter audits1Comment2ShareShare tax shelter audits1
Companies who set up IRS Code Section 419 Welfare Benefit Plans that were funded by life insurance are finding they've got big problems. Although insurance agents told business owners that their contributions would be tax deductible, they're actually reportable transactions – which has left many companies owing taxes they simply can't pay.
ReplyDeleteWhat is a 419 welfare benefit plan?
A welfare benefit plan is effectively a corporate-sponsored insurance plan, according to Steve Burgess, an insurance expert on 412(i) pension and 419 welfare benefit plans. He explained, “A corporation sets up a trust to provide insurance benefits for its employees. That’s the basic concept behind it. The corporation's contributions into the trust are tax-deductible and many of these plans allow you to pick and choose which employees you want involved in the plan.”
Abuses with plans funded with life insurance
Burgess says that while not all of these plans bad, the ones that are bad are very abusive – and those generally happen with plans that are funded with life insurance and that are commission-driven. He told us:
Basically what happens is that an insurance agent comes to a business owner and says, 'Hey, I can put this plan in place for you. You can make contributions to it. I’ll set it up so that your money goes into this nice life insurance policy and it will all be tax-deductible to you. Then at some point in the future, you can borrow the money back and not pay any taxes on it.'
What people don't realize is that, again, like 412(i) plans (link to article entitled 412(i) Pension Plan Fraud: Schemes Motivated By Big Insurance Commissions), many of these plans are reportable transactions to the IRS and that they’re not always compliant with how a welfare benefit plan is supposed to be set up. They get audited by the IRS who tells them they're not going to allow it and that they're going to have to restate the income and pay taxes on it.
Read more: http://employment-law.freeadvice.com/employment-law/pensions_benefits/big-problems-with-419-welfare-benefit-plans-funded-by-life-insurance.htm#ixzz4W8dQmSo0
Under Creative Commons License: Attributionon Facebook
Companies who set up IRS Code Section 419 Welfare Benefit Plans that were funded by life insurance are finding they've got big problems. Although insurance agents told business owners that their contributions would be tax deductible, they're actually reportable transactions – which has left many companies owing taxes they simply can't pay.
ReplyDeleteWhat is a 419 welfare benefit plan?
A welfare benefit plan is effectively a corporate-sponsored insurance plan, according to Steve Burgess, an insurance expert on 412(i) pension and 419 welfare benefit plans. He explained, “A corporation sets up a trust to provide insurance benefits for its employees. That’s the basic concept behind it. The corporation's contributions into the trust are tax-deductible and many of these plans allow you to pick and choose which employees you want involved in the plan.”
Abuses with plans funded with life insurance
Burgess says that while not all of these plans bad, the ones that are bad are very abusive – and those generally happen with plans that are funded with life insurance and that are commission-driven. He told us:
Basically what happens is that an insurance agent comes to a business owner and says, 'Hey, I can put this plan in place for you. You can make contributions to it. I’ll set it up so that your money goes into this nice life insurance policy and it will all be tax-deductible to you. Then at some point in the future, you can borrow the money back and not pay any taxes on it.'
What people don't realize is that, again, like 412(i) plans (link to article entitled 412(i) Pension Plan Fraud: Schemes Motivated By Big Insurance Commissions), many of these plans are reportable transactions to the IRS and that they’re not always compliant with how a welfare benefit plan is supposed to be set up. They get audited by the IRS who tells them they're not going to allow it and that they're going to have to restate the income and pay taxes on it.
Read more: http://employment-law.freeadvice.com/employment-law/pensions_benefits/big-problems-with-419-welfare-benefit-plans-funded-by-life-insurance.htm#ixzz4W8dQmSo0
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KMJ Radio Lance 3
ReplyDelete412i and 419e plans litigation. IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS
I went to Google, which, of course, knows all. There in all its splendor were comments on the trust citing 419, section 83, 409 A. One website was bold enough to say they have a patent (even though this type of patent has been illegal for years). But, this type of plan has been dead since 2000 when the Third Circuit upheld Neonatology Associates v. Commissioner.
ReplyDeleteWhat confuses me is why anyone would persist to create a plan that, at best, will not work as well as a traditional pension, but more likely the deduction will be disallowed along with every penalty known to the IRS?
Tax Shelter Help
ReplyDeleteRunning a business isn't easy. We are here to help you by providing you with useful financial information for your business.
Every Accountant and Attorney Should Read This Book
ReplyDeleteHoney, I forgot to duck …
— World Heavyweight Champion Jack Dempsey after losing
the heavyweids. Business survival may be at stake.
ReplyDeleteWHO I AM
Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR, and captive insurance plans. He speaks at more than ten conventions annually. Mr. Wallach writes for over fifty publications including AICPA Planner, Accounting Today, CPA Journal, National Public Accountant, Enrolled Agents Journal, Financial Planning, Registered Representative, Tax Practitioners Journal, Connecticut Law Tribune, Barrister, CPA/Law Forum, Employee Benefit News, Health Underwriter, Advisor and the American Medical Association News. Mr. Wallach teaches accountants how to increase their clientele. Wallach has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and his side has never lost a case. Visit Taxaudit419.com, Vebaplan.org and Taxadvisorexpert.com.
Restricted Property Trusts
ReplyDeleteProtect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our We
Restricted Property Trusts
ReplyDeleteProtect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today!
Need Help? Contact Us Today!
Office:516-938-5007 or Cell:516-236-8440
Restricted Property Trusts
ReplyDeleteProtect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today!
Need Help? Contact Us Today!
Office:516-938-5007 or Cell:516-236-8440
Restricted Property Trusts
ReplyDeleteProtect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today!
Need Help? Contact Us Today!
Office:516-938-5007 or Cell:516-236-8440
I have a CPA and an Attorney. Why do I need you?
ReplyDeleteLance Wallach
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
why you pay to much tax, 6477 views, 69 likes
ReplyDeleteEdit article
Published on February 3, 2017
Likewhy you pay to much tax, 6477 views, 69 likes0Comment0ShareShare why you pay to much tax, 6477 views, 69 likes0
Lance Wallach
Lance Wallach
Business Owner at National Offices of Lance Wallach
I have a CPA and an Attorney. Why do I need you?
Lance Wallach
FACT - "The Federal Tax Code is composed of 45,662 pages that require taxpayers to choose from 703 different forms. The Internal Revenue Code has grown to almost 1.4 million words today and is now 500,000 words longer than the Bible."
There is another unequivocal fact that every small businessperson should know - "small privately held businesses pay a considerably higher percentage of their earnings to taxes than do large corporations in America."
Though competent and qualified, the attorneys and accountants serving the small business community are not tax specialists. They are general practitioners. Small business attorneys focus mainly on legal matters such as contracts, entity formation and debt collections. Small business accountants wear many hats, such as: handling the books, interacting with the state and federal revenue services, reconciling bank records, preparing quarterly wage reports, etc. They simply don't have the time to spend 50 hours a week, 52 weeks a year, learning the intricacies of the ever changing tax code and applying the tax saving opportunities that lie within it.
When it comes to taxes, we have consistently found that most small businesses are merely doing year-end compliance work. Year-end tax compliance is what the IRS requires of a business. Basically, your accountant subtracts your expenses from your revenues, throws in the standard deductions and tells you how much you owe Uncle Sam. Does this sound familiar?
Small businesses should, like big businesses, properly structure their organizations to take advantage of the tax code.
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
ReplyDeleteBefore you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
Now, for the restrictive property trust, is this a plan under 419?-dead, section 83? or 409A? Have you read the 300 pages of regulations on 409A? The commentators are unclear. One claims to have a private letter ruling but does not publish it.
ReplyDeleteBefore you engage in the financial fantasy think hard, do you want to buy a lawsuit? The plaintiff attorney is waiting for you!
how to get , 4533 views, 244 likes
ReplyDeletePublished on October 24, 2016
LikedUnlikehow to get , 4533 views,
Restricted Property Trust
ReplyDeleteRestricted Property Trust, RPT, Ken Crabb, Kenton C. Crabb
understand the mechanics and legal issues surrounding what has become known as “419 Plans,” welfare benefit plans often used by small companies and funded with life insurance. For that reason taxpayers throughout the country seek his services in dealing with the Internal Revenue Service in audits, appeals and in the Tax Court.
ReplyDeleteWe can help you deal with:
audits, appeals and Tax Court
issues involving 419 Plan deductions and the taxation of withdrawals
listed transaction issues including filing Form 8886 and fighting the section 6707A and section 6662A penalties
See also: Captive Insurance Companies, 419 Plan Expert Witness and Life Insurance Trustee Risk Management.
Picture
Some of the Section 419 Welfare Benefit Plans:
NOVA Benefit Plans (run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others), including: the SADI Plan, the Grist Mill Plan, Life One, among others
Benistar Plans (also run or had been run by Dan Carpenter, Wayne Bursey, Guy Neumann, Kathy Kehoe, Joe Castagno and others)
Greater Metropolitan
Sterling Benefit Plan (run by Ronald Snyder)
Millenium Plans
CJA & Associates (run by Raymond Ankner)
Sea Nine VEBA
Compass Welfare Benefit Plan
Sunderlage Resource Group/SRG International (run by Tracy Sunderlage, among others)
Restricted Property Trust (RPT) (run by Ken Crabb)
+1 516.938.5007lance@expertwitness.taxNationwide - U.S.A
ReplyDeleteRestricted Property Trusts
Protect Yourself From IRS Audits
HOME FILE FORM 8886 TODAY CONTACT US
Welcome To Our Website for professionals and business entities who must comply with new IRS Notice requirements.
Failing to File Form 8886 for Vebas like Sea Nine Veba, or any 419, section 79, small Captives, or Restricted Property Trusts, creates multiple penalties!
The Form, IRS Form 8886 is required for all taxpayers who participate in a listed transaction such as a multiple employer welfare benefit program or 419 Plan.
If you are considering any of theses plans you need to take a few steps to protect yourself from potential audits from the IRS.
If you do not believe this Google Lance Wallach and whoever is advising you: YOU decide whom YOU Trust! Lance Wallach, National Society of Accountants, Speaker of the Year Member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),419, Section 79, RPT, FBAR and Captive insurance plans.
Get Help Filing Form 8886 _ We make Filing This Form Painless!!! Get all Your Money Back From the IRS_ Protect Yourself from IRS Audits_ Call Today!
Need Help? Contact Us Today!
Office:516-938-5007 or Cell:516-236-8440
∞—∞—∞—∞—∞
IRS Form 8886
The Restricted Property Trust is technically classified as a Welfare Benefit Plan. Welfare Benefit Plans are definitely nothing new. They actually date back to 1928, and come in many different names and forms.
ReplyDeleteThere are currently 34 US States that use some form of a Welfare Benefit Plan for their State employees. What most people don’t know is that, ALL Welfare Benefit Plans must be related and/or associated to an actual welfare situation, such as death, disability, or disease.
Now the bad news is that, The Restrictive Property Trust is just a new-model 419-SCAM. The problem is that it’s a SCAM and nothing more.
In conjunction with Section 83, The Restrictive Property Trust makes the insurance tax-deductible going-in and tax-free coming-out, of course with some minor modifications.
Of course there is no such thing as a The Restrictive Property Trust in the Internal Revenue Code. The plan promoter claims a patent, etc., but in reality, tax-strategy patents were completely out-lawed sometime in 2011. Is his patent from the 90’s?
The downside of The Restrictive Property Trust is that the IRS requires a substantial risk of forfeiture because of no reason other than the fact that it is just another scam.
If you want to lose your money, put it in The Restrictive Property Trust. Shortly after the participants get audited they usually sue the salesman and insurance company. The promoters claim that they have a legal opinion. The IRS does not care and disallows the deduction.
UNDERSTANDING CAPTIVE INSURANCE
ReplyDeletesome value, but certainly this should be done with caution.
Beware overpricing of services. In addition to the formation fee, management fee, and a percentage of the life insurance commissions, some promoters will also charge a percentage of deposits and a fee for using a shared risk pool. These fees are not commonly charged within the captive industry and may be considered excessive.
The life insurance community has a long and tortured history of seeking the Holy Grail of insurance schemes: the tax-deductible life insurance premium. Nearly every year around tax planning season, life insurance agents attempt to boost year-end sales by offering some kind of tax-deductible premium plan — the newest of which is the small business Captive Insurance Company (“CIC”) as an investor in life insurance. In this transaction, a small business deducts premium payments for business risks to an IRC § 831(b) CIC; the CIC is permitted to receive up to $1.2 million of premium income tax-free; and the CIC uses a substantial amount of the tax-free premium immediately to purchase life insurance on the small business owners who often also own the CIC. The Internal Revenue Service (“IRS”) already loses a substantial amount of otherwise collectible tax revenue due to the existing tax-breaks afforded life insurance policyholders, such as tax-free internal build-up inside life insurance policies and the receipt of policy proceeds tax-free at the death of the insured. Therefore, the IRS has historically staunchly defended the loss of additional life insurance-oriented tax revenue that may derive from tax-deductible life insurance premiums. In furtherance of this defense, the IRS has brought cases against individual taxpayers and promoters, designated certain abusive life insurance arrangements as listed transactions, and imposed accuracy-related taxpayer penalties.
ReplyDeleteUNDERSTANDING CAPTIVE INSURANCE
Captive Insurance companies, are sometimes used to purchase life insurance outside the estate of the business owner with what amounts to pre-tax dollars.
This should not be the primary focus of the captive, but is something that can be done with a portion of the captive's accumulated assets. If the primary purpose of the captive is to buy life insurance, or act as the conduit for the pre-tax purchase for life insurance, or if life insurance becomes the significant asset of the captive, there is a risk that the arrangement will not be considered a bona fide captive arrangement but will instead be treated as a tax shelter.
A captive is an insurance company, and should be treated as such, not a vehicle for investing.
Our Services
How we can help
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Complaint, Petition, and Response Preparation
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an expert can make a difference with any captive insurance problem
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Is your insurance company still in business? Will it be in business tomorrow? Are you still working with your insurance agent financial planner, stock broker etc. who put you into this situation? Are you going to do anything about your situation? If you are like most people you will sell stuff and lose money, or do nothing while you lose more, your bank and insurance company goes out of business and your retirement plan savings disappears. It does
hinc
ReplyDeleteAll you wanted was a comfortable retirement. What you got was fraud, incompetence, and
scams. Fortunately, Lance Wallach and his team are here to help you protect your assets and
keep the IRS out of your pockets!
Remember, many advisory firms offer financial planning, insurance, and investment services,
but the difference is that Lance Wallach wrote the books on life insurance as well as
financial and estate planning that the other consultants learned from!
If you want to sleep soundly at night, don't go to the students for your financial solutions, go to
the one who teaches them - Lance Wallach!
hinc
ReplyDeleteAll you wanted was a comfortable retirement. What you got was fraud, incompetence, and
scams. Fortunately, Lance Wallach and his team are here to help you protect your assets and
keep the IRS out of your pockets!
Remember, many advisory firms offer financial planning, insurance, and investment services,
but the difference is that Lance Wallach wrote the books on life insurance as well as
financial and estate planning that the other consultants learned from!
If you want to sleep soundly at night, don't go to the students for your financial solutions, go to
the one who teaches them - Lance Wallach!
How is the IRS Handling Cryptocurrency Transactions?
ReplyDeleteThe first page of IRS Form 1040 asks if at any time during the year you received, sold, or exchanged, or otherwise disposed of any financial interest in any virtual currency. If you have any taxable transactions, you should check “Yes.” If you have a nontaxable transaction – just buying Bitcoin or another cryptocurrency – you should check “No.”
Reporting Taxable Transactions
According to IRS Notice 2014-21, the IRS considers cryptocurrency as property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary. As a result, the most common crypto transactions that you do need to report on your tax return include:
Selling your Bitcoin or other crypto for cash
Trading one cryptocurrency for another cryptocurrency
Buying goods and services with your cryptocurrency
In addition to reporting your capital gains and losses, you may need to report certain transactions as ordinary income, including:
Receiving airdropped tokens
Receiving tokens as a result of a hard fork
Staking cryptocurrency
Yield farming and Liquidity Mining
Referral bonuses
How is the IRS Handling Cryptocurrency Transactions?
ReplyDeleteThe first page of IRS Form 1040 asks if at any time during the year you received, sold, or exchanged, or otherwise disposed of any financial interest in any virtual currency. If you have any taxable transactions, you should check “Yes.” If you have a nontaxable transaction – just buying Bitcoin or another cryptocurrency – you should check “No.”
Reporting Taxable Transactions
According to IRS Notice 2014-21, the IRS considers cryptocurrency as property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary. As a result, the most common crypto transactions that you do need to report on your tax return include:
Selling your Bitcoin or other crypto for cash
Trading one cryptocurrency for another cryptocurrency
Buying goods and services with your cryptocurrency
In addition to reporting your capital gains and losses, you may need to report certain transactions as ordinary income, including:
Receiving airdropped tokens
Receiving tokens as a result of a hard fork
Staking cryptocurrency
Yield farming and Liquidity Mining
Referral bonuses
http://www.taxaudit419.com/
ReplyDelete