Why You Should Not Own Mutual Funds at this time --- Mutual Funds can be considered dangerous to own. We have information on this and many other financial pitfalls in the business world.
restricted property trust, or how to get audited, 4533 views, 244 likes | Stacey Arenas | Pulse | LinkedIn
Restricted Property Trust Restricted Property Trust, RPT, Ken Crabb, Kenton C. Crabb
Monday, December 19, 2016 RestrictivePropertyTrust (RPT) restricted property trust , 2933 views, 55 likes Nov 8, 201633 views 1 Like 1 Comment Share on LinkedIn Share on Facebook Share on Twitter RestrictivePropertyTrust (RPT) tax shelters, 419 Plans, Benistar, Section 79, 412i plans, Captive Insurance,restrictive property trust
Posted by Lance Wallach at 5:48 AM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
Labels: restrictive property trust 1 comment:
Lance WallachJanuary 11, 2017 at 5:17 AM Jeff Gerber FollowJeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Jeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Financial Advisor/Broker Ken Crabb Suspended from Securities Industry | May Recover Investor LossesKen Crabb CRD #2397338Ken Crabb was a registered financial advisor with Destiny Capital Securities Corporation from 2001 to 2018. According to FINRA, Ken Crabb was fined $5,000 and was suspended from the securities industry for six months in March 2020.According to FINRA Allegations:Ken Crabb consented to the sanctions and to the entry of findings that Ken Crabb willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1.7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Ken Crabb, and the State of Ohio filed four tax liens against Ken Crabb. Ken Crabb disclosed one federal lien approximately seven years after learning of the lien’s existence, one federal lien and three state liens approximately two years after learning of the liens’ existence, and two federal liens approximately one year after learning of the liens’ existence. For three federal liens and one state lien, totaling more than $1.1 million, Ken Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Ken Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Ken Crabb falsely attested on his member firm’s annual compliance questionnaires that he did not have any unsatisfied judgments or liens. The above was listed on a few legal web sites. As an expert witness Lance Wallach's side has never lost a case. Recover Investor LossesIf you lost money on investments with Ken Crabb and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to help you in an arbitration action concerning Ken Crabb’s conduct. There is no charge for an evaluation of your case. . If you lost money on investments with Ken Crabb and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.Some of the information in this blog post was obtained on 3/6/2020 directly from FINRA BrokerCheck, without any changes. If you believe this information was reported incorrectly, please contact our firm at 516 2368440.
Restricted Property Trust Restricted Property Trust, RPT, Ken Crabb, Kenton C. Crabb
Monday, December 19, 2016 RestrictivePropertyTrust (RPT) restricted property trust , 2933 views, 55 likes Nov 8, 201633 views 1 Like 1 Comment Share on LinkedIn Share on Facebook Share on Twitter RestrictivePropertyTrust (RPT) tax shelters, 419 Plans, Benistar, Section 79, 412i plans, Captive Insurance,restrictive property trust
Posted by Lance Wallach at 5:48 AM Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
Labels: restrictive property trust 1 comment:
Lance WallachJanuary 11, 2017 at 5:17 AM Jeff Gerber FollowJeff Gerber Ins. Life Disability Long Term Care Health Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
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.
FINRA Allegations Without admitting or denying the findings, Crabb consented to the sanctions and to the entry of findings that he willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1. 7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Crabb, and the State of Ohio filed four tax liens against Crabb. Crabb disclosed one federal lien approximately seven years after learning of the lien's existence, one federal lien and three state liens approximately two years after learning of the liens' existence, and two federal liens approximately one year after learning of the liens' existence. For three federal liens and one state lien, totaling more than $ 1.1 million, Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Crabb falsely attested on his member firm's annual compliance questionnaires that he did not have any unsatisfied judgments or liens. Resolution Acceptance, Waiver & Consent(AWC) Sanctions Civil and Administrative Penalty(ies)/Fine(s) Amount $5,000.00
Sanctions Suspension Registration Capacities Affected All Capacities Duration six months Start Date 3/2/2020 End Date 9/1/2020
Sanctions The settlement includes a finding that Crabb willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member. Regulator Statement Fines paid in full on September 23, 2020.
+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!
IRS puts captive insurance on dirty dozen list, Edit article Published on February 17, 2017 LikeIRS puts captive insurance on dirty dozen list,0Comment0ShareShare IRS puts captive insurance on dirty dozen list,0 Lance Wallach Lance Wallach Business Owner at National Offices of Lance Wallach Captive Insurance
Another abuse involving a legitimate tax structure involves certain small or “micro” captive insurance companies. Tax law allows businesses to create “captive” insurance companies to enable those businesses to protect against certain risks. The insured claims deductions under the tax code for premiums paid for the insurance policies while the premiums end up with the captive insurance company owned by same owners of the insured or family members.
The captive insurance company, in turn, can elect under a separate section of the tax code to be taxed only on the investment income from the pool of premiums, excluding taxable income of up to $1.2 million per year in net written premiums.
In the abusive structure, unscrupulous promoters persuade closely held entities to participate in this scheme by assisting entities to create captive insurance companies onshore or offshore, drafting organizational documents and preparing initial filings to state insurance authorities and the IRS. The promoters assist with creating and “selling” to the entities often times poorly drafted “insurance” binders and policies to cover ordinary business risks or esoteric, implausible risks for exorbitant “premiums,” while maintaining their economical commercial coverage with traditional insurers.
Total amounts of annual premiums often equal the amount of deductions business entities need to reduce income for the year; or, for a wealthy entity, total premiums amount to $1.2 million annually to take full advantage of the Code provision. Underwriting and actuarial substantiation for the insurance premiums paid are either missing or insufficient. The promoters manage the entities’ captive insurance companies year after year for hefty fees, assisting taxpayers unsophisticated in insurance to continue the charade.
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. Looking for the IRS Number? Call (800)829-1040.
IRS Raids Nova Benefits Plans Offices
Lance Wallach
The Internal Revenue Service has declared an all out war on what they deem as fraudulent tax shelters. . Regulators view many Internal Revenue Code section 419, 412i, 79 and captive insurance plans as abusive tax shelters. That has given rise to the dreaded "listed transaction" designation. At the top of their list? Plans issued by Nova Benefit Plans, LLC.
The battle over section 419 plans is far from over. But everyone who invested in one of these plans should know the risks.
Fail to tell the government of the plan and special penalties of $200,000 for businesses and $100,000 for individuals may be assessed.
For more on this Google me or try www.lancewallach .com
Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. Lance has written
Probs IRS 412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS - Lance Walla
419 Plan Tax Controversies (Audits, Appeals and Tax Court) It's not all planning. Sometimes the IRS might disagree with planning you did with other advisors and you need to find counsel to ensure that your rights are protected, the facts are interpreted accurately and the law applied correctly. David Neufeld is among the few lawyers in this country who fully 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)
Doctors hate to pay taxes. Insurance agents love to sell insurance. Combine the two with a tax deduction the IRS offers to encourage employers to offer some life insurance to their
Notice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
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)
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)
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.
I have spent 30 years in tax law practice, three years in law school and taught as the lead faculty member for the Graduate Tax Program at Northeastern University and never saw restrictive property trust in the code or regulations.
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?
I prefer to follow the law as opposed to engage in “financial fantasies” (this was the wording the court used in Neonatology)
In a traditional pension, if you want to purchase insurance, you can use up to 50 percent of the pension contribution to purchase a whole life policy. Rev. Rul. 74-307, IRC section 401(a).
Second, if you want to purchase insurance you can use up to 50 percent of the pension contribution to purchase a whole life policy in a fully insured pension or 412 e 3 plan. Rev. Rul. 74-307.
Third, if you want to purchase insurance you can use up to 50 percent of the pension contribution in a cash balance plan to purchase a whole life policy. Rev. Rul 74-307.
Finally, if you do not like pensions, you can use up to 50 percent of the profit sharing contribution to purchase whole life insurance in the profit sharing plan. In all these cases, the purchase is 100 percent deductible (assuming at death the benefits are received as a taxable annuity).
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!
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive insurance company design qualified under Internal Revenue Code section 831(b) as a ‘transaction of interest.’ As such, those captive insurance companies have a disclosure obligation that, if not done or not done properly, can potentially lead to significant penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this obligation to determine if they might be covered by it and, if so, what they need to do now and going forward. Furthermore, Material Advisors must also disclose details of their own involvement as well as maintain lists of clients engaged in transactions identified in the Notice.”
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive insurance company design qualified under Internal Revenue Code section 831(b) as a ‘transaction of interest.’ As such, those captive insurance companies have a disclosure obligation that, if not done or not done properly, can potentially lead to significant penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this obligation to determine if they might be covered by it and, if so, what they need to do now and going forward. Furthermore, Material Advisors must also disclose details of their own involvement as well as maintain lists of clients engaged in transactions identified in the Notice.”
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive insurance company design qualified under Internal Revenue Code section 831(b) as a ‘transaction of interest.’ As such, those captive insurance companies have a disclosure obligation that, if not done or not done properly, can potentially lead to significant penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this obligation to determine if they might be covered by it and, if so, what they need to do now and going forward. Furthermore, Material Advisors must also disclose details of their own involvement as well as maintain lists of clients engaged in transactions identified in the Notice.”
restricted property trust get ur money back audits lawsuits Published on Published onDecember 11, 2017 Edit article View stats Stacey Arenas Stacey Arenas Assistant Managing Director, Marketing Manager at Vebaplan LLC 586 articles 71 Unlike 1 Comment 3
72 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.
Notice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
IRS will get you Published on March 21, 2018 Edit article View stats Lance Wallach Lance Wallach Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker 798 articles 2 Like 0 Comment 2
2 Some people search high and low for tax deductions. But making them up--or artificially enhancing the ones you have--isn't exactly keeping to the straight and narrow. Indeed, the IRS this year has specifically cautioned people about what it calls padding deductions. The IRS warns to avoid the temptation to falsely inflate deductions or expenses. In fact, the IRS includes the issue on its 2018 Dirty Dozen list of tax scams. In the IRS's words, the majority of taxpayers file honest and accurate tax returns each year.
However, as the IRS puts it, each year some people “fudge” their information. Falsely claiming deductions, expenses or credits on tax returns is serious, regardless of their type. The IRS notes that it happens with overstating deductions such as charitable contributions, padding business expenses, or including tax credits to which you are not entitled. Two big ones to watch? The Earned Income Tax Credit and the Child Tax Credit.
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.
Restricted Property Trust
ReplyDeleteRestricted Property Trust, RPT, Ken Crabb, Kenton C. Crabb
Monday, December 19, 2016
RestrictivePropertyTrust (RPT)
restricted property trust , 2933 views, 55 likes
Nov 8, 201633 views 1 Like 1 Comment Share on LinkedIn Share on Facebook Share on Twitter
RestrictivePropertyTrust (RPT)
tax shelters, 419 Plans, Benistar, Section 79, 412i plans, Captive Insurance,restrictive property trust
Posted by Lance Wallach at 5:48 AM
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Labels: restrictive property trust
1 comment:
Lance WallachJanuary 11, 2017 at 5:17 AM
Jeff Gerber
FollowJeff Gerber
Ins. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Before the IRS comes to you get help. Google Lance Wallach and whoever is selling you this, who do YOU trust.
DeleteJeff Gerber
DeleteIns. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
Financial Advisor/Broker Ken Crabb Suspended from Securities Industry | May Recover Investor LossesKen Crabb CRD #2397338Ken Crabb was a registered financial advisor with Destiny Capital Securities Corporation from 2001 to 2018. According to FINRA, Ken Crabb was fined $5,000 and was suspended from the securities industry for six months in March 2020.According to FINRA Allegations:Ken Crabb consented to the sanctions and to the entry of findings that Ken Crabb willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1.7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Ken Crabb, and the State of Ohio filed four tax liens against Ken Crabb. Ken Crabb disclosed one federal lien approximately seven years after learning of the lien’s existence, one federal lien and three state liens approximately two years after learning of the liens’ existence, and two federal liens approximately one year after learning of the liens’ existence. For three federal liens and one state lien, totaling more than $1.1 million, Ken Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Ken Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Ken Crabb falsely attested on his member firm’s annual compliance questionnaires that he did not have any unsatisfied judgments or liens. The above was listed on a few legal web sites. As an expert witness Lance Wallach's side has never lost a case. Recover Investor LossesIf you lost money on investments with Ken Crabb and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to help you in an arbitration action concerning Ken Crabb’s conduct. There is no charge for an evaluation of your case. . If you lost money on investments with Ken Crabb and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.Some of the information in this blog post was obtained on 3/6/2020 directly from FINRA BrokerCheck, without any changes. If you believe this information was reported incorrectly, please contact our firm at 516 2368440.
DeleteRestricted Property Trust
ReplyDeleteRestricted Property Trust, RPT, Ken Crabb, Kenton C. Crabb
Monday, December 19, 2016
RestrictivePropertyTrust (RPT)
restricted property trust , 2933 views, 55 likes
Nov 8, 201633 views 1 Like 1 Comment Share on LinkedIn Share on Facebook Share on Twitter
RestrictivePropertyTrust (RPT)
tax shelters, 419 Plans, Benistar, Section 79, 412i plans, Captive Insurance,restrictive property trust
Posted by Lance Wallach at 5:48 AM
Email This
BlogThis!
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Labels: restrictive property trust
1 comment:
Lance WallachJanuary 11, 2017 at 5:17 AM
Jeff Gerber
FollowJeff Gerber
Ins. Life Disability Long Term Care Health
Interesting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
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.
DeleteFINRA
Allegations
Without admitting or denying the findings, Crabb consented to the sanctions and to the entry of findings that he willfully failed to amend or timely amend his Form U4 to disclose federal and state tax liens totaling nearly $1. 7 million. The findings stated that the Internal Revenue Service (IRS) filed seven tax liens against Crabb, and the State of Ohio filed four tax liens against Crabb. Crabb disclosed one federal lien approximately seven years after learning of the lien's existence, one federal lien and three state liens approximately two years after learning of the liens' existence, and two federal liens approximately one year after learning of the liens' existence. For three federal liens and one state lien, totaling more than $ 1.1 million, Crabb failed to make any disclosure at all. With respect to three of the liens that he untimely disclosed, Crabb represented on his Form U4 that the liens were satisfied when they were not. The findings also stated that Crabb falsely attested on his member firm's annual compliance questionnaires that he did not have any unsatisfied judgments or liens.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Suspension
Registration Capacities Affected
All Capacities
Duration
six months
Start Date
3/2/2020
End Date
9/1/2020
Sanctions
The settlement includes a finding that Crabb willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member.
Regulator Statement
Fines paid in full on September 23, 2020.
Disciplinary Action Details
+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.
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IRS Form 8886
IRS puts captive insurance on dirty dozen list,
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Published on February 17, 2017
LikeIRS puts captive insurance on dirty dozen list,0Comment0ShareShare IRS puts captive insurance on dirty dozen list,0
Lance Wallach
Lance Wallach
Business Owner at National Offices of Lance Wallach
Captive Insurance
Another abuse involving a legitimate tax structure involves certain small or “micro” captive insurance companies. Tax law allows businesses to create “captive” insurance companies to enable those businesses to protect against certain risks. The insured claims deductions under the tax code for premiums paid for the insurance policies while the premiums end up with the captive insurance company owned by same owners of the insured or family members.
The captive insurance company, in turn, can elect under a separate section of the tax code to be taxed only on the investment income from the pool of premiums, excluding taxable income of up to $1.2 million per year in net written premiums.
In the abusive structure, unscrupulous promoters persuade closely held entities to participate in this scheme by assisting entities to create captive insurance companies onshore or offshore, drafting organizational documents and preparing initial filings to state insurance authorities and the IRS. The promoters assist with creating and “selling” to the entities often times poorly drafted “insurance” binders and policies to cover ordinary business risks or esoteric, implausible risks for exorbitant “premiums,” while maintaining their economical commercial coverage with traditional insurers.
Total amounts of annual premiums often equal the amount of deductions business entities need to reduce income for the year; or, for a wealthy entity, total premiums amount to $1.2 million annually to take full advantage of the Code provision. Underwriting and actuarial substantiation for the insurance premiums paid are either missing or insufficient. The promoters manage the entities’ captive insurance companies year after year for hefty fees, assisting taxpayers unsophisticated in insurance to continue the charade.
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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. Looking for the IRS Number? Call (800)829-1040.
IRS Raids Nova Benefits Plans Offices
Lance Wallach
The Internal Revenue Service has declared an all out war on what they deem as fraudulent tax shelters. . Regulators view many Internal Revenue Code section 419, 412i, 79 and captive insurance plans as abusive tax shelters. That has given rise to the dreaded "listed transaction" designation. At the top of their list? Plans issued by Nova Benefit Plans, LLC.
The battle over section 419 plans is far from over. But everyone who invested in one of these plans should know the risks.
Fail to tell the government of the plan and special penalties of $200,000 for businesses and $100,000 for individuals may be assessed.
For more on this Google me or try www.lancewallach .com
Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. Lance has written
Probs IRS
ReplyDelete412i, 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS - Lance Walla
419 Plan Tax Controversies (Audits, Appeals and Tax Court)
ReplyDeleteIt's not all planning. Sometimes the IRS might disagree with planning you did with other advisors and you need to find counsel to ensure that your rights are protected, the facts are interpreted accurately and the law applied correctly. David Neufeld is among the few lawyers in this country who fully 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)
RPT IRS is looking.
ReplyDeletePublished on Published onJanuary 4, 2017
Stacey Arenas
Doctors hate to pay taxes. Insurance agents love to sell insurance. Combine the two with a tax deduction the IRS offers to encourage employers to offer some life insurance to their
ReplyDeleteNotice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
ReplyDeleteInteresting ideas are being touted as the latest and greatest uses of Life Insurance for obtaining enormous tax savings. This idea is not really new and makes use of certain tax codes eg. 419 and 419(e). The plans have typically used lousy life insurance plans (the plan works better that way) and the IRS has reviewed bits and pieces of this area of tax law for years. These RPT's may fall under Listed Transactions connected with Benefit Plans. Go for it but you CPA's out there make sure you have a ton of E & O insurance.
ReplyDelete
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)
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)
ReplyDeleteI 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.
I have spent 30 years in tax law practice, three years in law school and taught as the lead faculty member for the Graduate Tax Program at Northeastern University and never saw restrictive property trust in the code or regulations.
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?
I prefer to follow the law as opposed to engage in “financial fantasies” (this was the wording the court used in Neonatology)
In a traditional pension, if you want to purchase insurance, you can use up to 50 percent of the pension contribution to purchase a whole life policy. Rev. Rul. 74-307, IRC section 401(a).
Second, if you want to purchase insurance you can use up to 50 percent of the pension contribution to purchase a whole life policy in a fully insured pension or 412 e 3 plan. Rev. Rul. 74-307.
Third, if you want to purchase insurance you can use up to 50 percent of the pension contribution in a cash balance plan to purchase a whole life policy. Rev. Rul 74-307.
Finally, if you do not like pensions, you can use up to 50 percent of the profit sharing contribution to purchase whole life insurance in the profit sharing plan. In all these cases, the purchase is 100 percent deductible (assuming at death the benefits are received as a taxable annuity).
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!
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive
ReplyDeleteinsurance company design qualified under Internal Revenue Code section 831(b) as a
‘transaction of interest.’ As such, those captive insurance companies have a disclosure
obligation that, if not done or not done properly, can potentially lead to significant
penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this
obligation to determine if they might be covered by it and, if so, what they need to do now
and going forward. Furthermore, Material Advisors must also disclose details of their own
involvement as well as maintain lists of clients engaged in transactions identified in the
Notice.”
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive
ReplyDeleteinsurance company design qualified under Internal Revenue Code section 831(b) as a
‘transaction of interest.’ As such, those captive insurance companies have a disclosure
obligation that, if not done or not done properly, can potentially lead to significant
penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this
obligation to determine if they might be covered by it and, if so, what they need to do now
and going forward. Furthermore, Material Advisors must also disclose details of their own
involvement as well as maintain lists of clients engaged in transactions identified in the
Notice.”
“On November 1, 2016, the IRS issued Notice 2016-66, which identified a specified captive
ReplyDeleteinsurance company design qualified under Internal Revenue Code section 831(b) as a
‘transaction of interest.’ As such, those captive insurance companies have a disclosure
obligation that, if not done or not done properly, can potentially lead to significant
penalties. Those taxpayers owning and using any 831(b) captive need to be aware of this
obligation to determine if they might be covered by it and, if so, what they need to do now
and going forward. Furthermore, Material Advisors must also disclose details of their own
involvement as well as maintain lists of clients engaged in transactions identified in the
Notice.”
restricted property trust get ur money back audits lawsuits
ReplyDeletePublished on Published onDecember 11, 2017
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Stacey Arenas
Stacey Arenas
Assistant Managing Director, Marketing Manager at Vebaplan LLC
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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.
Notice 2007-83 - Abusive Trust Arrangements Utilizing Cash Value Life Insurance Policies Purportedly to Provide Welfare Benefits - 2007-45 I.R.B. 1 (transactions in which certain trust arrangements claiming to be welfare benefit funds and involving cash value life insurance policies that are being promoted to and used by taxpayers to improperly claim federal income and employment tax benefits (identified as “listed transactions” on October 17, 2007)).
ReplyDeleteIRS will get you
ReplyDeletePublished on March 21, 2018
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Lance Wallach
Lance Wallach
Abusive tax shelters, 419, section 79, 412i micro captive insurance, VEBA, expert witness, author, speaker
798 articles
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Some people search high and low for tax deductions. But making them up--or artificially enhancing the ones you have--isn't exactly keeping to the straight and narrow. Indeed, the IRS this year has specifically cautioned people about what it calls padding deductions. The IRS warns to avoid the temptation to falsely inflate deductions or expenses. In fact, the IRS includes the issue on its 2018 Dirty Dozen list of tax scams. In the IRS's words, the majority of taxpayers file honest and accurate tax returns each year.
However, as the IRS puts it, each year some people “fudge” their information. Falsely claiming deductions, expenses or credits on tax returns is serious, regardless of their type. The IRS notes that it happens with overstating deductions such as charitable contributions, padding business expenses, or including tax credits to which you are not entitled. Two big ones to watch? The Earned Income Tax Credit and the Child Tax Credit.
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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.