If you have suffered losses forming or otherwise participating in a Malta Pension Plan or Malta Retirement Plan, you may be able to pursue recovery of your losses through claims against the promoter or advisor that recommended these to you. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Malta Pension Plan Tax Loss Recovery Options
Malta Pension Plan or Malta Retirement Plan are transactions that were promoted following a US-Malta Tax treaty in 2011 which allowed some US taxpayers to establish personal retirement plans under the Retirement Pensions Act of 2011. In some cases, US taxpayers were recommended by a financial advisor, tax advisor, or other promoter to help US taxpayers avoid certain US taxes by contributing non-cash assets (such as appreciated property or stock) so as to allow purported tax-free distributions on an ongoing basis - even of such contributed assets are sold.
In July 2021, the IRS added these Malta pension plan or Malta retirement plan transactions to its "Dirty Dozen" list, which identifies certain transactions that the IRS considers abusive and prohibited. In 2021, the US and also entered into an agreement to close the loophole in the Malta Retirement Pensions act for US citizens and residents. In June 2023, the IRS proposed to list Malta Pension plans as "listed transactions" - which would impose disclosure requirements on promoters and possible additional tax penalties.
Prior to June 2023, the IRS was only conducting enforcement of Malta Pension Plans through civil audits. However, after June 2023, The IRS' Criminal Investigation Division has started the process of in-person visits to taxpayers and advisors, and conducting criminal investigations into individuals who contributed to or promoted these transactions. Those under investigation include financial advisors, brokers, promoters, lawyers and accountants.
Malta Pension Plan and Malta Retirement Plan Participants Have Audit Recovery Options
Fortunately for those participants in Malta Pension Plans or Malta Retirement Plans, they may be able to pursue recovery of tax and other economic losses that you may have suffered (or may suffer) through claims against the financial advisor, law firm, or accounting firm that recommended or help structure this transaction for you.
How Can I Recover Money from Malta Pension Plan and Malta Retirement Plan Losses?
If you are an investor who has suffered losses participating in a Malta Pension Plan or Malta Retirement Plan, you may be able to pursue recovery of your losses against the advisor or promoter that recommended it to you. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law Firm represents investors throughout the United States in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com.
