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Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 3 Issue 142 December 21, 2001
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 3 Issue 142 December 21, 2001 |
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» From: Alexandria Dear TaxMama: Is it necessary to have a Third party involved in a Sec. 105 Medical plan? (Where the employer pays the employees medical expenses as part of wages). It seems like if you keep records to support the deductions, why would you have to pay a Third party to do the same thing. Please advise. Thanks Barbara  What a very interesting question. Honestly, I am not certain. You'd have to pull up the details on IRC Section 105 and see. Here's a link to the Internal Revenue Code Certainly, at the minimum, you must have a plan document. You must comply with all the reporting requirements of the plan (which change dramatically every time Congress sneezes). I never really thought about it. Frankly, for the $175 or so that BizPlan charges to administer the plan, it's pretty cheap to make them responsible for all compliance issues and reporting. All you have to do is send them your list of medical payments and they'll take care of all the rest. If your plan or reporting are challenged by IRS, they handle all the correspondence. To me, that alone is worth a fortune. Dealing with IRS professionally, I know how much time is involved. Their fee is about one billable hour of my time. Handle it yourself, and you will find yourself wasting hours that you could have spent earning money. Frankly, I'm a tax professional and know how to read and understand the tax code. I wouldn't do this myself. Not unless I set up my office to do it for hundreds of clients. The adminstration and detail is a complex for one, as it is for a hundred. Leave it to BizPlan. They get it right. I have never heard a complaint about them (from tax pros or users) in 15 years. Best wishes Eva Rosenberg Your TaxMama  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg |
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