Reportable Transactions and 419 Plans Litigation - Welfare benefit, Medical, Retirement plan benefit and design, Pension specialists, 412i Lawsuits, 419 lawsuits, IRS Audits, 412i Problems, Expert Witness Lance Wallach
Showing posts with label IRS Penalties. Show all posts
Showing posts with label IRS Penalties. Show all posts
Let us guide you through this maze and keep you out of trouble with the IRS
Reportable Transactions Are Causing Business Owners Big Trouble
With the IRS Because They Are Being Handled Improperly
IRS has made many deductions reportable, but require specific
forms to properly disclose the transaction.
In an attempt to curb the use of abusive tax shelters, new, stiff
penalties are in effect for failure to adequately disclose a
reportable transaction to the IRS. But unlike most other
penalties, the law significantly limits the IRS’s ability to rescind
or abate these penalties for reasonable cause or other
reasons.
This means that taxpayers must be much more vigilant in
identifying and disclosing these transactions. Even your CPA
may not recognize a particular transaction as reportable.
Don't fall into the trap of thinking that reportable transactions
are solely limited to what the IRS calls "abusive tax shelters."
The definition of a reportable transaction includes many
transactions that are routine and perfectly legitimate. It can
include any transaction with the potential for tax evasion or
avoidance. If you entered into any arrangement with the
primary purpose of avoiding or reducing taxes, that is probably
a reportable transaction that need to be disclosed.
With the IRS Because They Are Being Handled Improperly
IRS has made many deductions reportable, but require specific
forms to properly disclose the transaction.
In an attempt to curb the use of abusive tax shelters, new, stiff
penalties are in effect for failure to adequately disclose a
reportable transaction to the IRS. But unlike most other
penalties, the law significantly limits the IRS’s ability to rescind
or abate these penalties for reasonable cause or other
reasons.
This means that taxpayers must be much more vigilant in
identifying and disclosing these transactions. Even your CPA
may not recognize a particular transaction as reportable.
Don't fall into the trap of thinking that reportable transactions
are solely limited to what the IRS calls "abusive tax shelters."
The definition of a reportable transaction includes many
transactions that are routine and perfectly legitimate. It can
include any transaction with the potential for tax evasion or
avoidance. If you entered into any arrangement with the
primary purpose of avoiding or reducing taxes, that is probably
a reportable transaction that need to be disclosed.
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