Notice 2008-1 provides rules under which a 2 percent shareholder/employee in an S corporation is entitled to the deduction under Section 162(l) for accident and health insurance premiums paid or reimbursed by the S corporation and included in a shareholder or employee's gross income.
Eligible taxpayers who haven't claimed deductions may file timely amended tax returns to claim the deduction. The statement "Filed Pursuant to Notice 2008-1" should be written on the top of the amended return.
Payments of premiums by an S corporation are considered distributions for the single class of stock requirements of Section 1361(b)(1)(D).
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access