IRS Says Most 419 Plans Are Abusive Tax Shelters

On October 17, 2007, the IRS, in Notice 2007-83, identified as listed transactions certain trust

arrangements involving cash value life insurance policies. Revenue Ruling 2007-65, issued simultaneously,

addressed situations wherein the tax deduction has been disallowed, in whole or in part, for premiums paid on such cash value life insurance policies. These arrangements claim to be welfare benefit plans. 

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IRS Says Most 419 Plans Are Abusive Tax Shelters