Supreme Court rules in Favor of Religious Rights for Closely Held Corporations

Make no mistake the Burwell v. Hobby Lobby decision handed down by the United States Supreme Court just made religious ownership of a closely held corporation the center piece of tax planning. Over the coarse of the last month in preparation for this decision I have hosted a meetup on May 20, 2014 How Small Business Owners Can Save Thousands on Health Insurance Under the PPACA. And I put out to the small business owning and closely held corporation community a Do It Yourself – Section 105 – Health Reimbursement Arrangement for those business owners who wanted to make their single employee benefits completely tax deductible.

It is important to take note that several older news outlets such as what The New York Times published on June 4, 2014 Would You Try This Health jInsurance Strategy With Your Company? actually seemed to be working as the junk yard dog for the IRS and HHS in condemning the practices of Zane Benefits providing health benefits for small employers. It also seemed on the part of the dissenting legal experts that they were trying to intimidate anyone who had setup a corporation with more than one employee that they better provide the religiously offensive women’s benefits provided for by the PPACA. While Zane’s use of a defined contribution plan is in violation of IRS Notice 2013-54, any client’s whose plans pre-date the PPACA may be able to escape enforcement actions.

The reality of the post Burwell v. Hobby Lobby ruling is that religious ownership planning is now at the center of all business tax planning. Religious employers can offer their employees faith based benefits or limit their out of pocket employee benefit exposure to reasonable and predictable faith based cost limits. While religious ownership of a closely held corporation does not exempt an employer from all the provisions of IRS Notice 2013-54 with regards to reimbursement of employees  healthcare expenses, 1040 Wealth Designs, LLC will be launching a faith based employer/employee benefits website at FaithBenefits.com in the coming days to provide employers with the tools they need to stay compliant with the PPACA.

About this Author 

John Beidle is an enrolled agent who specializes in helping entrepreneurs, small business owners and real estate investors pay the least amount of tax as legally possible.

About The Author

John Beidle

John Beidle is an enrolled agent who specializes in helping entrepreneurs, small business owners and real estate investors pay the least amount of tax as legally possible.

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