Deduction of Medical and Dental Cost by an Accrual Basis Taxpayer

In a Technical Advice Memorandum, the IRS concludes that an accrual basis taxpayer that maintains a self-insured medical and dental plans where the taxpayer pays the service providers more than two and one-half months after the end of the taxable year may deduct the payments in its taxable year during which the medical and dental services are provided.

Link http://www.irs.gov/pub/irs-wd/0846021.pdf

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