Plainview, NY USA Lance@expertcpa.org +1 516-938-5007
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Section 79 Plans Home Section 79 Info Section 79 Scams Disadvantages of Section 79 Plans How To Avoid Fines Contact Us How To Avoid the Fines section 79 If you have to sue or are being sued, call Lance Wallach. He has never lost a case as an Expert Witness! In order to avoid substantial IRS fines, business owners and material advisors involved in the sale of Section 79 type plans must properly file under Section 6707A. More often than not, filing isn’t enough. Many times the IRS assesses fines on clients whose accountants did file the form yet filed it with a simple unintentional mistake. Such an error usually results in the client being fined more quickly than if the form were never filed at all. Everyone in a Section 79 should file protectively under Section 6707A.
Anyone who has not filed protectively in a Section 79 plan had better get some good advice from someone who has extensive experience filing protectively. The IRS still has task forces auditing these plans.
As an expert witness, I can attest that in most cases involving Section 79 plans often do not go well for the agents, accountants, plan promoters, insurance companies and other involved parties.
The IRS may call you a material advisor for selling one of these plans and fine you $200,000.00. They may fine your clients over a million dollars for being in such a retirement plan. Anything that the IRS deems, at its sole discretion, a “listed transaction” is fair game.
section79help Call Lance @ (516) 938-5007 Qualified and non-qualified retirement plans are created by employers with the intent of benefiting their employees. The Employee Retirement Income Security Act (ERISA), enacted in 1974, defines qualified and non-qualified plans.
Qualified plans are designed to offer individuals added tax benefits on top of their regular retirement plans, such as IRAs. Employers deduct an allowable portion of pretax wages from the employees, and the contributions and the earnings then grow tax-deferred until withdrawal.
Non-qualified plans are those that are not eligible for tax-deferral benefits. Consequently, deducted contributions for non-qualified plans are taxed when income is recognized. This generally refers to when employees must pay income taxes on benefits associated with their employment.
The main difference between the two plans is the tax treatment of deductions by employers, but there are other differences. A plan must meet several criteria to be considered qualified, such as:
Disclosure – Documents pertaining to the plan’s framework and investments must be available to participants upon request. Coverage – A specified portion of employees, but not all, must be covered. Participation – Employees who meet eligibility requirements must be permitted to participate. Vesting – After a specified duration of employment, a participant’s rights to pensions are non-forfeitable benefits. Nondiscrimination – Benefits must be proportionately equal in assignment to all participants in order to prevent excessive weighting in favor of higher paid employees.
Plainview, NY USA Lance@expertcpa.org +1 516-938-5007
Search …
Section 79 Plans Home Section 79 Info Section 79 Scams Disadvantages of Section 79 Plans How To Avoid Fines Contact Us How To Avoid the Fines section 79 If you have to sue or are being sued, call Lance Wallach. He has never lost a case as an Expert Witness! In order to avoid substantial IRS fines, business owners and material advisors involved in the sale of Section 79 type plans must properly file under Section 6707A. More often than not, filing isn’t enough. Many times the IRS assesses fines on clients whose accountants did file the form yet filed it with a simple unintentional mistake. Such an error usually results in the client being fined more quickly than if the form were never filed at all. Everyone in a Section 79 should file protectively under Section 6707A.
Anyone who has not filed protectively in a Section 79 plan had better get some good advice from someone who has extensive experience filing protectively. The IRS still has task forces auditing these plans.
As an expert witness, I can attest that in most cases involving Section 79 plans often do not go well for the agents, accountants, plan promoters, insurance companies and other involved parties.
The IRS may call you a material advisor for selling one of these plans and fine you $200,000.00. They may fine your clients over a million dollars for being in such a retirement plan. Anything that the IRS deems, at its sole discretion, a “listed transaction” is fair game.
section79help Call Lance @ (516) 938-5007 Qualified and non-qualified retirement plans are created by employers with the intent of benefiting their employees. The Employee Retirement Income Security Act (ERISA), enacted in 1974, defines qualified and non-qualified plans.
Qualified plans are designed to offer individuals added tax benefits on top of their regular retirement plans, such as IRAs. Employers deduct an allowable portion of pretax wages from the employees, and the contributions and the earnings then grow tax-deferred until withdrawal.
Non-qualified plans are those that are not eligible for tax-deferral benefits. Consequently, deducted contributions for non-qualified plans are taxed when income is recognized. This generally refers to when employees must pay income taxes on benefits associated with their employment.
The main difference between the two plans is the tax treatment of deductions by employers, but there are other differences. A plan must meet several criteria to be considered qualified, such as:
Disclosure – Documents pertaining to the plan’s framework and investments must be available to participants upon request. Coverage – A specified portion of employees, but not all, must be covered. Participation – Employees who meet eligibility requirements must be permitted to participate. Vesting – After a specified duration of employment, a participant’s rights to pensions are non-forfeitable benefits. Nondiscrimination – Benefits must be proportionately equal in assignment to all participants in order to prevent excessive weighting in favor of higher paid employees.
Plainview, NY USA Lance@expertcpa.org +1 516-938-5007
ReplyDeleteSearch …
Section 79 Plans
Home
Section 79 Info
Section 79 Scams
Disadvantages of Section 79 Plans
How To Avoid Fines
Contact Us
How To Avoid the Fines
section 79
If you have to sue or are being sued, call Lance Wallach. He has never lost a case as an Expert Witness!
In order to avoid substantial IRS fines, business owners and material advisors involved in the sale of Section 79 type plans must properly file under Section 6707A. More often than not, filing isn’t enough. Many times the IRS assesses fines on clients whose accountants did file the form yet filed it with a simple unintentional mistake. Such an error usually results in the client being fined more quickly than if the form were never filed at all. Everyone in a Section 79 should file protectively under Section 6707A.
Anyone who has not filed protectively in a Section 79 plan had better get some good advice from someone who has extensive experience filing protectively. The IRS still has task forces auditing these plans.
As an expert witness, I can attest that in most cases involving Section 79 plans often do not go well for the agents, accountants, plan promoters, insurance companies and other involved parties.
The IRS may call you a material advisor for selling one of these plans and fine you $200,000.00. They may fine your clients over a million dollars for being in such a retirement plan. Anything that the IRS deems, at its sole discretion, a “listed transaction” is fair game.
section79help
Call Lance @ (516) 938-5007
Qualified and non-qualified retirement plans are created by employers with the intent of benefiting their employees. The Employee Retirement Income Security Act (ERISA), enacted in 1974, defines qualified and non-qualified plans.
Qualified plans are designed to offer individuals added tax benefits on top of their regular retirement plans, such as IRAs. Employers deduct an allowable portion of pretax wages from the employees, and the contributions and the earnings then grow tax-deferred until withdrawal.
Non-qualified plans are those that are not eligible for tax-deferral benefits. Consequently, deducted contributions for non-qualified plans are taxed when income is recognized. This generally refers to when employees must pay income taxes on benefits associated with their employment.
The main difference between the two plans is the tax treatment of deductions by employers, but there are other differences. A plan must meet several criteria to be considered qualified, such as:
Disclosure – Documents pertaining to the plan’s framework and investments must be available to participants upon request.
Coverage – A specified portion of employees, but not all, must be covered.
Participation – Employees who meet eligibility requirements must be permitted to participate.
Vesting – After a specified duration of employment, a participant’s rights to pensions are non-forfeitable benefits.
Nondiscrimination – Benefits must be proportionately equal in assignment to all participants in order to prevent excessive weighting in favor of higher paid employees.
Plainview, NY USA Lance@expertcpa.org +1 516-938-5007
ReplyDeleteSearch …
Section 79 Plans
Home
Section 79 Info
Section 79 Scams
Disadvantages of Section 79 Plans
How To Avoid Fines
Contact Us
How To Avoid the Fines
section 79
If you have to sue or are being sued, call Lance Wallach. He has never lost a case as an Expert Witness!
In order to avoid substantial IRS fines, business owners and material advisors involved in the sale of Section 79 type plans must properly file under Section 6707A. More often than not, filing isn’t enough. Many times the IRS assesses fines on clients whose accountants did file the form yet filed it with a simple unintentional mistake. Such an error usually results in the client being fined more quickly than if the form were never filed at all. Everyone in a Section 79 should file protectively under Section 6707A.
Anyone who has not filed protectively in a Section 79 plan had better get some good advice from someone who has extensive experience filing protectively. The IRS still has task forces auditing these plans.
As an expert witness, I can attest that in most cases involving Section 79 plans often do not go well for the agents, accountants, plan promoters, insurance companies and other involved parties.
The IRS may call you a material advisor for selling one of these plans and fine you $200,000.00. They may fine your clients over a million dollars for being in such a retirement plan. Anything that the IRS deems, at its sole discretion, a “listed transaction” is fair game.
section79help
Call Lance @ (516) 938-5007
Qualified and non-qualified retirement plans are created by employers with the intent of benefiting their employees. The Employee Retirement Income Security Act (ERISA), enacted in 1974, defines qualified and non-qualified plans.
Qualified plans are designed to offer individuals added tax benefits on top of their regular retirement plans, such as IRAs. Employers deduct an allowable portion of pretax wages from the employees, and the contributions and the earnings then grow tax-deferred until withdrawal.
Non-qualified plans are those that are not eligible for tax-deferral benefits. Consequently, deducted contributions for non-qualified plans are taxed when income is recognized. This generally refers to when employees must pay income taxes on benefits associated with their employment.
The main difference between the two plans is the tax treatment of deductions by employers, but there are other differences. A plan must meet several criteria to be considered qualified, such as:
Disclosure – Documents pertaining to the plan’s framework and investments must be available to participants upon request.
Coverage – A specified portion of employees, but not all, must be covered.
Participation – Employees who meet eligibility requirements must be permitted to participate.
Vesting – After a specified duration of employment, a participant’s rights to pensions are non-forfeitable benefits.
Nondiscrimination – Benefits must be proportionately equal in assignment to all participants in order to prevent excessive weighting in favor of higher paid employees.