Tennessee regulators are taking action against a company that has been offering to trade what it calls a “tax-deductible installment plan” for a variety of financial assets.
Leslie Newman, commissioner of the Tennessee Department of Commerce and Insurance, says she has filed a petition in a Tennessee state court for permission to place National Foundation of America, Franklin, Tenn., in receivership.
Representatives for National Foundation were not immediately available for comment on the Tennessee action.
Alabama, Texas and Washington officials also taken action against National Foundation, Tennessee officials say.
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The company has contested cease-and-desist order notices issued in Iowa and Florida, officials say.
National Foundation says on its Web site that the installment plan it offers is based on Section 453 of the Internal Revenue Code and can be used to replace annuities, real estate, bonds, securities and cash with an arrangement that can produce “guaranteed income that grows each year” while lowering taxable income by up to 50%.