Jump to content

1099 Required for director LTC coverage?


Recommended Posts

Corporate taxpayer has been paying premiums for individual Long Term Care policies on its outside directors for over a decade, no 1099s issued.

Is there any basis for excluding these premiums from director income?

If not, is the proper reporting form a 1099-NEC?

Since “correction” of the problem will be many amended tax returns, anybody willing to venture an opinion on how many years delinquent 1099s should be filed?

Thanks

 

 

.

 

Link to comment
Share on other sites

Long term care premiums are deductible by the company and not included in the income of the employee/director as long as the company does not retain an interest in the policy.

LTC is not subject to ERISA, so companies can choose who is covered.

Link to comment
Share on other sites

Seems like purely an individual income tax issue.  I don't know how there could be an exclusion from income for an independent contractor's coverage.

Seems like the relevant cites on the individual deductibility side would be §162(l)(2)(C) and §213(d)(10).

You also may have a MEWA issue with offering to outside directors.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...