Listed Transactions Fraud Protection

Because of continuing problems with insurance plan promotion fraud, including misrepresentations that plan premiums are tax deductible, the IRS issued regulations that named certain transactions as potentially abusive tax shelters, known as listed transactions. A listed transaction is any transaction that is similar to one the IRS determined to be a tax avoidance transaction. These transactions must be identified in a published notice. Consumers must disclose and register listed transactions with the IRS.

The IRS, unbeknownst to consumers, may consider many products and services offered by insurance companies. Consumers who are involved in these services may face serious financial and tax consequences, including participation in a listed transaction and tax shelter penalties.

Consumers who are involved in these services may face serious financial and tax consequences, including participation in a listed transaction and tax shelter penalties.

The listed transactions fraud protection attorneys of Charapp & Weiss represent consumers who are accused of participation in listed transactions, and who suffer tax shelter penalties, and often the loss of pensions or other benefits, because of this. In addition to defending consumers against these accusations, we also assist clients in recovering benefits because of the fraudulent conduct of insurance companies and their plan promoters.

Protecting taxpayers from listed transactions

A listed transactions lawyer defends employees against accusations of fraudulent or negligent conduct as a result of participation in a benefit plan that is a listed transaction. The IRS lists the following employee benefit plans as listed transactions:

  • 401(k) accelerated deductions
  • S Corporation ESOP abuse of delayed effective date for Section 409(p)
  • Collectively bargained welfare benefit funds under Section 419A(f)(5)
  • Certain trust arrangements seeking to qualify for exemption from Section 419
  • Abusive Roth IRA transactions
  • S Corporation ESOP abuses, including certain business structures held to violate Section 409(p)
  • Deductions for excess life insurance in a Section 412(i) or other defined benefit plan

There is evidence that the IRS might also consider 419(e) benefit plans to be substantially similar to a listed transaction in certain cases.

Every year the IRS issues formal guidance on certain tax avoidance transactions taht are listed transactions. The full list as determined by the IRS can be found on its website at This list is important because taxpayers are required to disclose to the IRS their participation in benefit plans or other transactions that are deemed listed transactions by filing a form 8886 disclosure statement.

Experienced listed transactions lawyers defending employees

Employees, who are accused of participating in a listed transaction, or plan or transaction that is substantially similar to a listed transaction, should seek the assistance of an experienced listed transactions attorney. An attorney can help minimize the consequences an employee may face and prepare a strong defense against allegations of fraud or negligent conduct, including arguing that a transaction is not a potentially abusive tax shelter, or that the IRS did not publish notice of the status of the transaction.

Sophisticated representation. Attentive service.

Contact the listed transaction lawyers of Charapp & Weiss today for more information about listed transactions, fraud protection, and targeted solutions for your legal issue.