Effen Posted January 22, 2004 Posted January 22, 2004 I have been trying to catch up on my reading as I am VERY behind. In the Mar-Apr 2003 ASPA Journal in an article written by Brian Graff and Danea Kehoe the following was stated: "Treasury's Benefits Tax Counsel, William Sweetnam, Esq. warned that guidance on 412(i) plans is of 'paramount importance.' James E. Holland ... suggested the government may soon issue two types of guidance: a notice warning of the government's concern about these plans and then later, more substantive guidance laying out proposed rules aimed at shutting down abusive practices." "By the time you read this article, it is quite possible the notice outlining IRS's recent concerns respecting certain 412(i) plan designs - referred internally within the IRS as 'yellow-light' notice - will have already been issued." Then in the Sep-Oct 2003 ASPA Journal, Larry Deutsch wrote, "Further guidance should be available soon, possibly even available already as you are reading this article." My questions is, has this pending guidance ever been issued? If not, what is causing the delay? Both Larry Deutsch and Brian Graff are certainly Washington insiders and were clearly expecting its release almost a year ago. I'm starting to feel like the boy who cried "wolf". The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Belgarath Posted January 22, 2004 Posted January 22, 2004 SUPPOSEDLY, according to an ASPA release last week, the 412(i) regs will be released prior to the Los Angeles Benefits Conference next week. Seems likely that it will be true this time, but just in case, I won't deprive myself of oxygen while I'm waiting...
Blinky the 3-eyed Fish Posted January 22, 2004 Posted January 22, 2004 I would liken your situation to the townsfolk, rather than the boy. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Effen Posted January 22, 2004 Author Posted January 22, 2004 Ya know Blink, your right. But actually the "wolf" was a bad thing for the towns people. I'm hoping the regs are a good thing for the industry. Maybe I feel more like a street preacher, yelling at the multitude to repent. But that would make the IRS God, which has some merit, but I don't like the comparison. Maybe I'm more like the big brother who warns his little sister that "mom is going to get you when she finds out", but when mom does find out, she doesn't seem to care and sister just sticks her tongue out at you. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Blinky the 3-eyed Fish Posted January 22, 2004 Posted January 22, 2004 Touche. Although, for insurance salesman the new regs will without question resemble the wolf. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Effen Posted January 22, 2004 Author Posted January 22, 2004 one can only hope! The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Belgarath Posted January 22, 2004 Posted January 22, 2004 Effen, your comment reminds me of the story of the steeple painter. As he was 2/3 of the way done, he noticed he was getting low on paint. Since the climb down to the ground was an unattractive option, he simply dumped in some thinner. However, as he was nearing 90% completion, the same thing happened. So he made it thinner yet.When he was finished, the results were predictably less than satisfying, but he decided that nobody would notice. As he prepared to descend, he heard a voice out of the heavens, saying, "Repaint, and Thin No More!"
Effen Posted January 22, 2004 Author Posted January 22, 2004 LOL !! Did you hear the one about the kid who was doing poorly in math at the public school so his mother decided to send him to catholic school? After his first day of school he came right home and headed to his room to study his math. Second day, same thing...... This continued for the next 6 weeks when he brought home his first "A" in math. The mother was very excited and asked her son what was it about the catholic school that helped him so much. Was it one of the nuns? Was it the father? Did the other students help him? The boy looked at his mom and said, "no, it wasn't any of those things" "Then what was it", asked the mother. "Well", said the boy, "when I went on the first day and saw that guy nailed to the plus sign, I knew they weren't kidding around with their math." The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Kirk Maldonado Posted January 23, 2004 Posted January 23, 2004 Effen: If you think that there is any chance that the IRS will come out with good news regarding aggressive Section 412(i) plans, I predict that you will be sorely disappointed. All the signs point in the opposite direction. Kirk Maldonado
Effen Posted January 23, 2004 Author Posted January 23, 2004 What do you mean by "good"? Do you think the IRS will "bless" them or "kill" them? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted January 23, 2004 Posted January 23, 2004 Just got this email from TAG: Dear Manulife Forum Member: IRS is preparing to release new guidance regarding 412(i) plans, sometime in the next few weeks. We expect to see new regulations, as well as revenue rulings, to be issued. TAG has also learned that IRS will be targeting 412(i) plans for audit. We will post information as it becomes available. Stay tuned. This newsletter, in addition to the full TAG service, is brought to you by Manulife.
Kirk Maldonado Posted January 24, 2004 Posted January 24, 2004 412(i), where is the guidance? Be careful of what you ask for; you may actually get it! Kirk Maldonado
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