Posted by: jessicasmall | June 22, 2007

TASC Takes on the IRS

An AgriPlan Client recently had their Plan audited by the Internal Revenue Service (IRS).  Unfortunately, in this case the judge ruled that insurance premiums and out-of-pocket expenses were not deductible because the defendants could not prove that the expenses were incurred by the employee.   In sum, the judge determined that the insurance premium and all out-of-pocket expenses must be in the name of the employee if they are to qualify for reimbursement. 

TASC obviously disagrees with this ruling and plans to appeal this decision.  Based on our many years of experience with Section 105 Plans, we hold that the judge failed to consider some very important language found within the regulations.  According to our attorney, by holding that all medical expenses must be incurred by the employee, the Court is in direct contradiction of the regulations.
But the bigger issue in my mind is the amount of energy and effort the IRS has put into this audit.  We are in the middle of a health care crisis in this country, and the IRS spends its time totally misinterpreting the law and worrying about a small deduction by one family-based business owner.  This of course, requires our Clients, who are struggling to even afford health care to use their precious time and energy to defend themselves.  As we say in Wisconsin, I think the IRS has larger fish to fry.
Fortunately for this Client, TASC stands behind its Plans.  As dictated by our exclusive Audit Guarantee, we supported this Client throughout the entire process, including covering all costs incurred in regards to this case. The value here is not just to this Client, but to all Clients and to all family-owned small businesses that are often discriminated against when compared to the benefits their counterparts in corporate America receive.  The moral of the story: TASC stands up for small businesses.

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