For those small business owners who have been hoping for some good news regarding relief from
6707A penalties, it may finally have arrived in the form of
HR 4068 and
S2917 . On February 10, 2010 the Senate passed S2917 and if the House passes the Bill those tax-payors who were dupped into
412i plans may be subject to a much smaller penalty under 6707A.
The other side of those transactions of course is that many participants still have their money being held hostage by insurance policies that were used to fund these schemes. Large insurers like
American General, Indianapolis Life (now
AVIVA),
Hartford and
Pacific Life have taken the position that they had no responsibility for the marketing of 412i Plans and simply provided an insurance product. This is another example of client abuse by the life insurance industry as the majority of 412i plans were promoted by insurance agents using insurance company marketing materials for 412i plans.
If you are one of the unlucky business owners who were sold a 412i plan funded with expensive life insurance policies you will want to contact
The Center for Life Insurance Disputes to find out how you can get your money back from the insurance company without going to court. They have been able to negotiate settlements directly with insurance companies for many 412i victims and avoid costly lawsuits (
See more information about 412i plans and getting money back from an insurance company).
