Are you a small business owner? Do you spend more than $400 per year on un-reimbursed medical expenses? If you answer “Yes” to both of these, we need to discuss how Section 105 of the IRS Code (Health Reimbursement Account) can save you $2,000 or more in taxes for 2015!
There are two companies that specialize in Section 105 compliance for small family businesses. We recommend TASC to our clients because it offers an audit guarantee and provides excellent customer service. We partner with TASC on a regular basis and are experienced with the requirements for this tax code. It’s our job to serve as your liaison with TASC and to ensure you file all necessary documentation on time.
Most people aren’t aware of Section 105, and that includes a lot of accountants and tax preparers! While Section 105 can provide a significant benefit to those who qualify, if a tax preparer uses the Section 105 deduction without proper documentation and qualifications, the fines and penalties can be tremendous.
Medical deductions can get complicated – both for individual tax preparation as well as for small businesses. Let’s review your expenses and your tax profile together to determine what would be most beneficial to you. Call us to schedule a meeting for October so we can ensure you meet all required deadlines for 2015 filing. You can reach us at (913) 888-9100. We strongly encourage our clients to enroll for this program in January or February; however, we can get you enrolled up to November 1 for the 2015 tax year.
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.