Key Takeaways
- • Kevin Wessell, founder and CEO of Asset Protection Planners with 180,000+ subscribers, proactively disclosed a multi-year IRS records dispute that has since been fully resolved, emphasizing transparency as the appropriate response to regulatory scrutiny.
- • The 2018 IRS inquiry was not a tax compliance dispute—Wessell's companies maintained full tax compliance—but rather a records verification request designed to confirm customers were meeting their own tax obligations.
- • Upon receiving the formal records request, Wessell retained outside counsel and granted the IRS unrestricted access to all business systems, databases, login credentials, and documents without restriction, following CPA advice to demonstrate full cooperation.
- • The case illustrates the critical importance of comprehensive recordkeeping, immediate legal counsel engagement, and proactive disclosure in resolving regulatory disputes, particularly for business owners managing customer-facing compliance obligations.
Summary
Kevin Wessell, founder and CEO of Asset Protection Planners, has publicly disclosed a protracted records dispute with the Internal Revenue Service that he characterized as a pivotal learning experience in his business career. With a subscriber base of 180,000, Wessell chose to address the matter directly rather than allow competitors or online commentators to misrepresent the situation—a deliberate strategy centered on what he describes as "full transparency" in regulatory matters.
The dispute originated in late 2018 when Wessell was formally served with a records request covering a multi-year period. Critically, the inquiry was not framed as a tax compliance challenge against Wessell or his companies, which have maintained full tax compliance according to his statement. Instead, the IRS was conducting a records verification inquiry aimed at confirming whether Wessell's customers were themselves meeting their individual tax obligations. This distinction is material: the regulatory focus was on third-party compliance validation rather than direct tax liability.
Upon receiving the formal request, Wessell's response followed a collaborative compliance framework. On his CPA's advice, he retained outside counsel and instructed his team to grant the IRS law firm complete, unrestricted access to every system, database, login credential, and document connected to the inquiry. "I held absolutely nothing back," Wessell stated, emphasizing that all requested materials were provided without reservation or delay. The IRS subsequently directed his legal team in writing to cease document production, signaling that sufficient materials had been gathered to conclude the inquiry.
The case has since been fully resolved and serves as a template for the compliance posture Wessell now advocates to business owners: early legal engagement, comprehensive recordkeeping, and proactive cooperation with federal authorities. For institutional investors and alternative investment professionals managing operational risk, the case underscores the value of maintaining immaculate documentation and avoiding adversarial positioning when facing regulatory scrutiny—an approach that can significantly reduce litigation duration and associated legal costs.
The dispute originated in late 2018 when Wessell was formally served with a records request covering a multi-year period. Critically, the inquiry was not framed as a tax compliance challenge against Wessell or his companies, which have maintained full tax compliance according to his statement. Instead, the IRS was conducting a records verification inquiry aimed at confirming whether Wessell's customers were themselves meeting their individual tax obligations. This distinction is material: the regulatory focus was on third-party compliance validation rather than direct tax liability.
Upon receiving the formal request, Wessell's response followed a collaborative compliance framework. On his CPA's advice, he retained outside counsel and instructed his team to grant the IRS law firm complete, unrestricted access to every system, database, login credential, and document connected to the inquiry. "I held absolutely nothing back," Wessell stated, emphasizing that all requested materials were provided without reservation or delay. The IRS subsequently directed his legal team in writing to cease document production, signaling that sufficient materials had been gathered to conclude the inquiry.
The case has since been fully resolved and serves as a template for the compliance posture Wessell now advocates to business owners: early legal engagement, comprehensive recordkeeping, and proactive cooperation with federal authorities. For institutional investors and alternative investment professionals managing operational risk, the case underscores the value of maintaining immaculate documentation and avoiding adversarial positioning when facing regulatory scrutiny—an approach that can significantly reduce litigation duration and associated legal costs.
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