- tax litigation........
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Benefits Trust | 419 Litigation Participants Of Professional BenefitsTrust/PBT/Mavin/Acadia Likely To Lose 50% Of Their Assets Per Year Under FBAR Reporting Rules As A Result Of DOJ Enforcement Action Against Tracy Sunderlage, Mavin LLC Professional Benefits Trust | 419 Litigation Potential trouble (419 Litigation) is in store for any participants of the Professional benefits trust (“PBT”) who chose to continue in the “welfare plan” and allow the assets to be moved offshore and be deposited into the Mavin Assurance and Acadia annuities are in danger of losing 50% of their assets per year in penalty payments to the United States Treasury. On July 13, 2011, the Department of Justice sued Tracy Sunderlage, Mavin LLC and others in federal court in the Northern District of Illinois claiming that the PBT/Mavin/Aciadia scheme constitutes an offshore income tax scam. The DOJ seeks to enjoin the activities of these parties–but it also seeks to gain information about taxpayers who are participating in the Mavin and Acadia transations. Once the DOJ acquires the participant list in the lawsuit the IRS will commence enforcement activities against the participants the lists reveal. 419 Litigation Pertaining to PBT/Mavin/Acadia Offshore Income Tax Scam The vast majority of the people participating in the PBT/Mavin/Acadia transactions do not realize that their investment constitutes and interest in a foreign account that obligated them to file an “FBAR” or foreign bank account report every year since the investments left the US, or that they are faced with 419 litigation. The civil penalties for failing to file the FBAR are 50% of the aggregate account value every year. The criminal penalties are IN ADDITION to the other potentially applicable penalties, for example, for filing a fraudulent income tax return; failing to disclose a listed transaction and failing to file the proper returns relating to ownership or interest in foreign entities or trusts. The aggregate value of taxes and penalties may easily exceed the value of the investment held offshore. Big Trouble Ahead, Including 419 Litigation, For Many 419 Welfare Benefit Plan Participants Participants in the PBT/Mavin/Acadia transaction should take action now to contact tax and other appropriate professionals to help them avoid these potentially disastrous consequences. There is a voluntary disclosure program available to FBAR non-filers that drastically reduces penalties…but the deadline for filing is August 31, 2011. Further, legal assistance will be required in order to return participants assets to the United States and to the control of the assets rightful owners. For assistance and information contact The Harris Firm, 800.201.8441