| Accounting Today | | | | a stop to such egregious misrepresentations in |
| Be careful of abusive 419(e) welfare benefit plans | | | | 2002 by issuing regulations and naming such plans |
| BY LANCE WALLACH AND RONALD H. SNYDER | | | | as "potentially abusive tax shelters" (or "listed |
| Oct. 22-Nov. 4., 2007 | | | | transactions") that needed to be registered and |
| Life insurance agents and companies have always | | | | disclosed to the IRS. |
| tried to find ways of making costs paid by | | | | And what happened to the providers that were |
| business owners tax deductible. | | | | peddling Sections 419A(f)(5) and (6) life insurance |
| The situation became ridiculous a few years ago | | | | plans a few years ago? We recently found the |
| with outrageous claims about how Sections | | | | answer: Most of them found a new life as |
| 419A(f)(5) and (6) of the Internal Revenue Code | | | | promoters of so-called "419(e)" welfare benefit |
| exempted employers from any tax-deduction | | | | plans. |
| limitations. Finally, the Internal Revenue Service put | | | | |