Leaderboard

I thought they had already expanded it by requiring all tax preparers to audit custody and EITC issues.

Use the address of the son with POA. Don't overthink this.

>>“You can deduct the premiums only if the S Corporation reports the premiums paid or reimbursed as wages in Box 1 of Form W-2 in 2014 and you also report the premium payments or reimbursement as wages on Form 1040, line 7”.<< This is nothing new! The S-corp reports the premiums as W2 income (and deducts as insurance/salary expense) therefore it is as 1040 W2 income on line 7 (offset by less S-corp income) and the individual taxpayer then takes his health ins deduction. Its always been this way for an S-corp. It's just a pass through.

There should not be any problem with the feds, but unless the son lives in one of the non-tax states, the state could come looking for their share of the tax pie. The son might then have to get involved with proving the actual residency of the parents.