After an aircraft accident happened: Global Aerospace Inc Insurance company, asked us to sign over the FAA aircraft title to them and told us we "MUST leave the buyer and dollar amount blank. We questioned them if it was legal as they told us they would later sell the plane to a salvage company by filling the salvage companies information in as the Buyer and the salvage amount.
It appears to us Global Aerospace is trying to avoid tax laws both State and Federal by passing the title off as if we sold it to the salvage company. Is this tax fraud under IRS rules?
If this is against IRS rules, how do I protect myself from liability?
We told this insurance company that we preferred to fill out that they were the Buyer and the dollar amount was the amount we received from the insurance company. Their response was we "MUST leave the buyer information BLANK and the dollar amount blank and that this was non negotiable".