The Offices of Lance Wallach
"America's leading tax representation firm"(TM)

Advisers staring at a new ‘slew' of
litigation from small-business clients
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.

Get Sued!
The IRS is cracking down on what it considers to be
abusivetax shelters. Many of them are being marketed to small business
owners byinsurance professionals, financial planners and
even accountants and attorneys.
Plans can lead to severe penalties for Accountants

IRS Small Business and
Self-Employed Division Will Emphasize
Enforcement Activities over the Next Year
    What follows is a story about Bruce Hink
    and how the IRS fined him $200,000 a year for
    being in what they called “a listed transaction”.  
A Rose By Any Other Name, or
Whatever Happened to all those 419A(f)(6)Providers?
The IRS finally put a stop to such assertions by issuing
regulations and naming such plans as “potentially abusive tax shelters”
(or “listed transactions”) that needed to be disclosed and registered.
How to Get Fined $100,000 by the IRS
and Lose Your License
benefit retirement plans and all 419 welfare benefit plans.
IRS Attacks Accountants & Business Owners
Senator seeks support to scale back the IRS’s assault on
nondisclosure of alleged tax shelters due to constitutional concerns.
Regaining The Lost Confidentiality of Off-Shore Trusts
Today, in jurisdiction after jurisdiction, the custodial  bank
is required to know who the beneficial owner of the trust is.
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Business Owners, Accountants, and Others
Fined $200,000 by IRS and Don’t Know Why
Published by John Wiley & Sons


The Health Savings Account has proven particularly useful as tool to help lower the ever-increasing
cost of health insurance premiums.  When established early enough, HSAs can ultimately serve
as a quite useful pool of funds to help defray the cost of medical care in retirement.  Healthcare
Reimbursement Arrangements provide the business owner with even more leverage to contain
healthcare costs.

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 numerous books including
Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk
Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA
best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small
Business Hot Spots. He does expert witness testimony and has never lost a case. Mr. Wallach
may be reached at 516/938.5007,, or at or

The information provided herein is not intended as legal, accounting, financial or any type of advice
for any specific individual or other entity. You should contact an appropriate professional for any
such advice.

Detroit — The independent health care trusts established to administer benefits for Detroit city
retirees post-bankruptcy are running out of cash, but officials say they’ll have a stopgap fix this
The voluntary employee beneficiary associations, or VEBAs, were a key component of the city’s
landmark restructuring plan, significantly lowering $4.3 billion in long-term liability for health
care and other post-benefits.
Part of Detroit’s goal through its debt-cutting plan was to unload its liability for health care
benefits to general and public safety retirees who retired by Dec. 31, 2014.
The city issued $450 million in new promissory notes toward funding the two trusts. But just six
months out of bankruptcy, those notes — valued at around 60 cents on the dollar — haven’t yet
gained adequate value in the bond markets, leaving Detroit’s VEBA overseers in search of
short-term cash.
Costs are about $3 million per month for both funds. Each now has about $4 million to $5
million in cash remaining...

VEBAs ‘very successful’

General city retiree William C. Plumpe says about $120 a month has been dedicated from the
VEBA toward his health care savings account.
With $750 to $1,000 a month in new health care expenses, he’s getting by with his pension and
Social Security payments. He hopes much of the cost will be picked up by Medicare when he
turns 65 in a couple of years.
“I believe there is sufficient funding to ensure the $120 a month, but no more,” he said. “I am
hoping that somebody makes some kind of contribution to the VEBA in the near future to help
defray costs,” he added, suggesting the state could kick in.
New York-based VEBA consultant Lance Wallach said VEBAs have
been around for decades and, with smaller entities, have been “very successful.”
A trust also came into play for the automakers as they were emerging from bankruptcy.
“The trick with a VEBA is to fund it with enough money, make good investments and to use
conservative interest rate assumptions,”
Wallach said.
“The problem is, it’s tough to know what returns will be like in future years and how many
employees will be in it.”

Benistar News!!

Benistar The Truth!!!
CIVIL ACTION NO. 09-988 (E.D. Pa. Aug. 31, 2016)


This case arises out of an action by Plaintiff, the Secretary of Labor of the United States Department of
Labor ("DOL"), brought against two multiple-employer trusts and others, alleging breach of their fiduciary
duties under the Employee Retirement Income Security Act for failure to maintain employee welfare
benefit plan assets in trust and transferring plan assets into non-trust accounts they controlled. Before the
Court is Defendant John J. Koresko's ("Koresko") Motion for Reconsideration of the Court's Order of
Contempt issued April 26, 2016 (ECF No. 1307).
In entering the Contempt Order, the Court concluded that the DOL had proved by clear and convincing
evidence that: (1) a valid order of the court existed; (2) the defendant had knowledge of the order; and (3)
the defendant disobeyed the order. See FTC v. Lane Labs-USA, Inc., 624 F.3d 575, 591 (3d Cir. 2010). The
Court's rationale was set forth in its oral opinion from the bench at the conclusion of the hearing on the
Motion for Contempt. See ECF No. 1321.
Beyond the frivolous and meritless objections discussed supra, Koresko has not offered any
newly-discovered evidence or asserted any manifest errors of law or fact that would warrant
reconsideration. A motion for reconsideration should generally be denied "unless the moving party can
point to controlling decisions or data that the court overlooked." Shrader v. CSX Transp., Inc., 70 F.3d 255,
257 (2d Cir. 1995).
Koresko having failed to do so, the motion
is denied.
John Koresko, Real VEBA, be made
whole, get all your money back from
the insurance company,fight the IRS
Your Best Source For All
Information "REAL VEBA'S"
Vebas,419 plan section 79 and
Captive Insurance Scams