For six long years, Kenton Crabb found himself embroiled in a challenging battle with the IRS, a journey that tested his resilience and the validity of his life’s work: the Restricted Property Trust (RPT). In February 2018, Crabb became the focal point of an IRS promoter investigation, which cast a shadow over both his personal integrity and the effectiveness of the Restricted Property Trust as a tax strategy. Accusations based on IRC section 6700, which often deals with the promotion of potentially abusive tax shelters, threatened to unravel the years of effort Crabb put into the Restricted Property Trust.
As the investigation moved forward, Crabb had to navigate a maelstrom of negative media attention and public skepticism. Despite these circumstances, Crabb never lost his faith in the fundamental principles behind the Restricted Property Trust. With the support of his legal team, led by an experienced attorney with over a decade in the IRS National Office of Chief Counsel, Crabb began the process of defending his work against what seemed like overwhelming odds.
The IRS investigation lasted for an exhaustive six years, probing into whether Crabb’s Restricted Property Trust was a legitimate tax strategy or a risky ploy. Throughout these years, Crabb maintained his dedication to providing his clients with tools for tax efficiency and wealth management. He faced every twist and turn of the investigation head-on, committed to ensuring that the truth about the Restricted Property Trust’s legitimacy would ultimately prevail.
In February 2024, the IRS made a monumental decision: to drop the investigation against Kenton Crabb. The decision was an unprecedented moment for Crabb’s legal team and his supporters. Crabb’s attorney remarked that he had never seen a similar investigation conclude without any ramifications, underscoring the integrity of Crabb’s practices. Though the IRS clarified that the decision to close the investigation did not serve as an endorsement of Crabb’s conduct, it nonetheless provided much-needed closure for Crabb and the broader financial community.
Kenton Crabb emerged from this battle victorious, not just in a legal sense, but also in terms of public perception. With the IRS dropping the case, Crabb could focus once more on his original mission—delivering tax-efficient solutions for high-net-worth individuals. The outcome of the investigation bolstered Crabb’s credibility, with the Restricted Property Trust earning renewed recognition as a compliant, effective financial tool.
Moving forward, Crabb sees the conclusion of the investigation as a turning point. “The scrutiny was relentless, but we always believed in the legitimacy of the Restricted Property Trust,” Crabb stated. Now, freed from the investigation, he aims to continue helping clients build wealth while complying with the complexities of tax law.
The Restricted Property Trust allows business owners and high-net-worth individuals to fund life insurance and retirement benefits in a tax-advantageous manner. With the investigation closed, Crabb’s confidence in the product’s compliance is vindicated. His message to clients and the financial planning community is clear: after years of intense examination, the Restricted Property Trust stands as a legitimate, effective tool.
His message to clients and the financial planning community is clear: after years of intense examination, the Restricted Property Trust stands as a legitimate, effective tool.
