1099 Required for director LTC coverage?

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

.

You definitely want to run this by counsel.

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.

I understand the exclusion of LTC coverage from employee income but wonder if you have a cite supporting exclusion from income of outside directors (independent contractors), thanks.

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.