It's a good thing Mrs. Speltz kept good records.

Five years ago, long-time family child care provider Maureen Speltz received notification that she was going to be audited by the IRS. Through the audit, $7,800 in uninsured medical expenses came under contention. Mrs. Speltz had hired her husband to help with her business in the afternoon by playing with the children, watching the children when Mrs. Speltz had a doctor or other appointment, repairing toys, doing lawn care, and more. She did not pay her husband a salary but instead set up a medical reimbursement plan through a tax advisor, whereby, in exchange for his services, she agreed to pay uninsured medical expenses for him and his family.

The IRS argued that Mr. Speltz was not a bona fide employee in Mrs. Speltz's business and that the medical expenses were not an ordinary and necessary business expense. Fortunately, Mrs. Speltz's Calendar-Keeper™ proved otherwise. Her detailed account of the work her husband performed was key evidence in demonstrating that Mr. Speltz provided essential services for Mrs. Speltz's child care business.

With the support and legal advice of Redleaf National Institute (RNI) director, Tom Copeland, Mrs. Speltz ultimately won her case. "This ruling will make it easier for providers and other self-employed business people to establish medical reimbursement plans when hiring their spouses," said Tom Copeland. "By winning this case, Mrs. Speltz saved about $2,000 in taxes for the two years covered in this audit."

"For me, RNI has been the best source of business books, forms, and training," wrote Mrs. Speltz in a letter of gratitude to Tom Copeland. "My bookkeeping that was so completely raked over by the IRS was modeled after RNI suggestions. My Calendar-Keeper™ is a wonderful tool for keeping records all together."

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