Svetlana Khromova sent a message to Dennis R Glass that said:
July 24, 2018
Dennis R. Glass, President / CEO
Lincoln Financial Group
150 Radnor Chester Road
Radnor, PA 19087
Re: Contract # EN5316942
Owner: The EMK Irrevocable Trust
Dear Mr. Glass,
As you may see from reviewing the above-referenced Contract and related file documents, in August 2017, the owner of the Contact has been changed from Eugene Gozman to The EMK Irrevocable Trust.
Prior to initiating the change, the previous owner and our attorney, Lina Klebaner spoke and corresponded in writing with your representatives on numerous several occasions.
They specifically inquired from your representatives about tax consequences for requested change and were assured that the change of owner from Mr. Gozman to âThe EMK Irrevocable Trustâ is a NON-REPORTABLE and NON-TAXABLE event.
Based on your representations, while not changing the annuitant, Mr. Gozman went ahead and made the change of ownership to the EMK Irrevocable Trust (see attached).
Youâre also undoubtedly aware of the IRS Code §72(u) and its exception confirming that if the annuity is held by a trust, as an agent for a natural person, the contract is tax deferred.
Clearly, I was shocked receiving the form 1099-R (attached) asking for payment $34,586.37?!?
Based on your own representations and the IRS Code, your company made a mistake by reporting this transaction to the IRS.
You should immediately correct your filing, withdraw the form or take other steps to notify the IRS that this is a non-taxable event.
It has been months of correspondence with different departments and staff from your company with no resolution. They have taken no actions to rectify this mistake. Please let me know if you would like me to forward you the many lengthy emails, communications, and explanations with your personnel.
I expect your prompt review and action in this matter, so that your mistake is corrected without further delay.
Thank you,
Svetlana Khromova
Svetlana Khromova,
Trustee of the EMK Irrevocable Trust
