FBAR
By lance wallach, 2011-08-12




Advisers staring at a new ‘slew' of litigation from small-business clients
Five-year-old change in tax has left some small businesses and certain benefit plans subject to IRS fines; the advisers who sold these plans may pay the price

By Jessica Toonkel Marquez

October 14, 2009
Financial advisers who have sold certain types of retirement and other benefit plans to small businesses might soon be facing a wave of lawsuits — unless Congress decides to take action soon.
For years, advisers and insurance brokers have sold the 412(i) plan, a type of defined-benefit pension plan, and the 419 plan, a health and welfare plan, to small businesses as a way of providing such benefits to their employees, while also receiving a tax break.
However, in 2004, Congress changed the law to require that companies file with the Internal Revenue Service if they had these plans in place. The law change was intended to address tax shelters, particularly those set up by large companies.
Many companies and financial advisers didn't realize that this was a cause for concern, however, and now employers are receiving a great deal of scrutiny from the federal government, according to experts.
The IRS has been aggressive in auditing these plans. The fines for failing to notify the agency about them are $200,000 per business per year the plan has been in place and $100,000 per individual.
So advisers who sold these plans to small business are now slowly starting to become the target of litigation from employers who are subject to these fines.
“There is a slew of litigation already against advisers that sold these plans,” said Lance Wallach, an expert on 412(i) and 419 plans. “I get calls from lawyers every week asking me to be an expert witness on these cases.”
Mr. Wallach declined to cite any specific suits. But one adviser who has been selling 412(i) plans for years said his firm is already facing six lawsuits over the sale of such plans and has another two pending.
“My legal and accounting bills last year were $864,000,” said the adviser, who asked not to be identified. “And if this doesn't get fixed, everyone and their uncle will sue us.”
Currently, the IRS has instituted a moratorium on collecting these fines until the end of the year in the hope that Congress will address the issue.
In a Sept. 24 letter to Sens. Max Baucus, D-Mont., Charles Boustany Jr., R-La., and Charles Grassley, R-Iowa, IRS Commissioner Douglas H. Shulman wrote: “I understand that Congress is still considering this issue and that a bipartisan, bicameral bill may be in the works … To give Congress time to address the issue, I am writing to extend the suspension of collection enforcement action through Dec. 31.”
But with so much of Congress' attention on health care reform at the moment, experts are worried that the issue may go unresolved indefinitely.
“If Congress doesn't amend the statute, and clients find themselves having to pay these fines, they will absolutely go after the advisers that sold these plans to them,”
www.vebaplan.com
Comments
By AicAU, 2021-04-20 13:29:14
Medicine information leaflet. Generic Name.
<a href="https://topregabalin.top">where to get lyrica no prescription</a> in US
All what you want to know about medication. Read now.
By Janicecaw, 2021-04-30 10:52:44
when does cialis patent expire <a href="https://mycialistabs.com/">cialis commercial</a> cialis discount card
By TiffanySor, 2021-05-04 04:21:19
cheap cialis 20mg <a href="https://toptadalafiltabs.com/">does cialis make you bigger</a> where to buy cialis online
By StellaBlalf, 2021-05-05 21:55:02
how to write a synthesis essay ap lang <a href="https://topessaywriterfas.com/">top essay writer f a s</a> how to write a conclusion for a history essay
By RebeccaJer, 2021-05-07 04:35:55
essay writing service;college essay writing services <a href="http://writemyessayslfd.com/">www.writemyessayslfd.com</a> google's essay checking service
By FrancesSiz, 2021-05-07 13:16:25
buying viagra <a href="https://mrviagrashop.com">sildenafil revatio</a> viagra boys band
By Martinamex, 2021-05-08 02:26:52
viagra alternatives <a href="https://mysildenafilkr.com/">buy viagra online cheap</a> sildenafil canada
By UnmJL, 2021-05-12 14:40:30
cover letter writing <a href="http://coverletterforresumetop.com/">top resume reviews</a> nursing resumes
By EolLW, 2021-05-13 09:22:06
relevant coursework resume <a href="https://writingacoverletteronline.com/">best cover letter writing service</a> general resume objective
By UuvGN, 2021-05-14 08:39:06
viagra sex <a href="https://edviagramaster.net/">viagra generic over the counter</a> viagra para mujer
By VcaME, 2021-05-16 04:27:28
cost of cialis <a href="https://cialisortadalafil.com/">tadalafil dosage 40 mg</a> does daily cialis lower blood pressure
By VgbXA, 2021-05-16 06:44:48
sildenafil citrate tablets <a href="https://sildenafilviagratop.com">cheap sildenafil</a> viagra for sale online
By MwsKP, 2021-05-17 07:14:45
cialis patent expiration <a href="https://topcialistabs.com/">does cialis lowers blood pressure</a> buying cialis cheap
By Smeage, 2022-03-25 16:29:25
paid an essay writing service to write seinfeld <a href="https://englishessayblog.com/">buy term paper online</a> service opportunities essay
Add a comment
Your Display Name
Your Email Address
Confirmation Code
 
 

Take a note :)

 
 
 
 

Most popular compliments

 
  HWA HOMEOWNER WARRANTY  
1
 
 
17624 Responses
 
 
 
  Best Quality  
2
 
 
14416 Responses
 
 
 
  Home Warranty of America (HWA) Review  
3
 
 
5382 Responses
 
 
 
  Steven R. Carini and NuLook Capital, LLC.  
4
 
 
4939 Responses
 
 
 
  Home Warranty of America Came Through  
5
 
 
4831 Responses
 
 
Add your story | News & Videos | Tips & Tricks
Contact us
© 2009 Compliment World | Privacy