* For employees who terminate employment during a calendar year
, employers may either include or exclude the cost of post-employment continuation coverage during the year, as long as the method used for such employees is reasonable and consistent (Q&A 6).
6041(a), a person engaged in a trade or business must file information returns with the IRS, reporting payments made to nonemployees for services rendered in the form of salaries, wages, commissions, fees, incentive awards and other compensation totaling $600 or more in a calendar year
. In addition, under Sec.
Under this approach, a taxpayer would end up the same as if he had an interest in a calendar year
entity, although the correction wouldn't occur until the final year of the loan.