Reportable Transactions Resources
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| Natural persons who fail to disclose a reportable transaction to the IRS are subject to a $10,000 penalty. Other nonreporting taxpayers are subject to a $50,000 penalty. The penalties are increased to $100,000 and $200,000, respectively, for natural persons and other taxpayers who fail to disclose a reportable transaction that is a listed transaction |
The IRS Says:
| 516 - 935 - 7346 |
| Even plan administrators pleaded for help, but thousand of people got IRS audits, fines and penalties anyway. |
Hot Links at your disposal: Find much more information and articles about the perils of reportable transactions at these websites: ListedTransactions TaxAudit419.com TaxAdvisorExperts.com TaxLibrary.us irsform8886 irs6707Apenalty section79plans lawyer4audits |
| See an excerpt from an email by a plan administrator frustrated with IRS activities below |
To: Everyone I know!
It could be you.
I am a Third Party Administrator and am asking for your help. One of my
clients with 4 employees who simply funded a retirement plan with $500,000
recently endured a 5.5 year IRS audit of his 412 (i) pension plan. Upon
completion of the audit the client owes $55,000 in income taxes for 2004-
2006 and has refunds from 2007-2008 of $55,000 (timing difference only) He
owes about $30,000 in blackmail money (He really should owe nothing!). The
SBSE income tax agent has threatened to assess $800,000 in penalties
under Code Section 6707a. The IRS is far exceeding their authority in
assessing the 6707a penalty this is totally prosecutorial abuse. WE must put
a stop to this! My client cooperated and acted in good faith and did file the
form 8886 (Maybe not 100% correctly but none the less, he did file the
necessary forms).……
Dennis Cunning
It could be you.
I am a Third Party Administrator and am asking for your help. One of my
clients with 4 employees who simply funded a retirement plan with $500,000
recently endured a 5.5 year IRS audit of his 412 (i) pension plan. Upon
completion of the audit the client owes $55,000 in income taxes for 2004-
2006 and has refunds from 2007-2008 of $55,000 (timing difference only) He
owes about $30,000 in blackmail money (He really should owe nothing!). The
SBSE income tax agent has threatened to assess $800,000 in penalties
under Code Section 6707a. The IRS is far exceeding their authority in
assessing the 6707a penalty this is totally prosecutorial abuse. WE must put
a stop to this! My client cooperated and acted in good faith and did file the
form 8886 (Maybe not 100% correctly but none the less, he did file the
necessary forms).……
Dennis Cunning