Accountable Plan Setup
If you own an S corporation or C corporation, an accountable plan lets your company reimburse you, tax-free, for the home office, mileage, and phone costs you already pay out of pocket. We prepare the written plan, adoption resolution, and expense-report system with Enrolled Agent review for a flat $499. It is a controlled California pilot with a quick fit screen before you pay.
Free. No commitment. We assess your situation in 15 minutes.
In short: If you are an owner-employee of an S corporation or C corporation, money you spend personally on business costs (home office, mileage, phone) is not deductible on your own return, but your company can reimburse it tax-free under a written accountable plan. This California pilot prepares that plan: a written policy, an adoption resolution, and an expense-report system. Payment starts a fit and conflict review; the engagement begins after acceptance and a signed engagement letter.
What's Included
- Written accountable-plan policy tailored to your corporation
- Model adoption action for review under your governing documents
- Expense-report template and substantiation system
- Mileage log and vehicle-method comparison worksheet
- Home office reimbursement worksheet
- Bookkeeping and payroll implementation instructions
- Executive summary of assumptions and client responsibilities
Timeline: Within 5 business days after firm acceptance, signed engagement, and complete intake
Not included:
- Legal advice or corporate-governance validity review
- Historical payroll or bookkeeping cleanup
- Tax return preparation
Reimburse Yourself the Right Way
If you own an S corporation or C corporation, you are an employee of your own company. When you pay business costs personally, such as a home office, business miles on your own car, or the business share of your phone bill, the clean way to recover them is a corporate reimbursement under a written accountable plan.
When the arrangement and underlying expenses satisfy federal requirements, qualifying reimbursements generally are not treated as wages and the corporation may deduct allowable business expenses subject to the usual limitations. We prepare the written policy, a model adoption action for client review, and a workflow designed to support consistent substantiation.
The Trap Most Owner-Employees Miss
Current federal rules generally do not allow employees to claim miscellaneous itemized deductions for unreimbursed employee business expenses. Owner-employees should coordinate personally paid company expenses with the corporation instead of assuming an individual deduction is available.
Accountable Plan Setup
- Written accountable-plan policy
- Model adoption action for client review
- Expense-report template and system
- Home office reimbursement worksheet
- Mileage method comparison (standard vs actual)
- Implementation checklist and operating instructions
Continue on Accountable Plan Pro
Accountable Plan Pro has its own private product repository and secure operations boundary. The dedicated site contains the privacy-preserving California pilot screen and current checkout status.
Open Accountable Plan ProThe Three Requirements of an Accountable Plan
Favorable treatment depends on satisfying all three federal requirements and operating the arrangement consistently. A written document alone is not enough. The setup builds each requirement into the policy and workflow for Enrolled Agent review.
Business Connection
Every reimbursed expense must be a real business expense the employee paid or incurred while performing services for the company. The written policy defines reviewed categories, while the facts and records still determine whether a particular expense qualifies.
Substantiation
The employee must document the amount, date, and business purpose of each expense within a reasonable time. The package supplies an expense report and supporting logs; the company remains responsible for completing them and retaining its receipts and records.
Return of Excess
Any advance or reimbursement that exceeds substantiated expenses must be returned to the company within a reasonable time. The policy uses operating deadlines aligned with the regulatory safe harbors. Late, excess, or unsubstantiated amounts are flagged for review and may require wage treatment.
Home Office
The corporation reimburses the business-use share of rent or mortgage interest, utilities, insurance, and internet based on a square-footage worksheet.
Mileage
The vehicle worksheet compares the standard-rate and actual-expense methods from structured facts, then flags method eligibility and the final choice for Enrolled Agent review.
Phone & More
The business-use percentage of your cell phone and other mixed-use costs, plus travel, supplies, and dues, all flow through the same documented process.
Choose Your Level of Support
Start with the controlled setup, move to expanded implementation only after a written scope and price review, or return for a separately authorized quarterly review.
Plan Setup
Written policy, model adoption action, expense-report system, worksheets, and implementation instructions. Every package receives Enrolled Agent approval before secure delivery.
Full Package
For cases needing payroll coordination, historical cleanup, multistate analysis, or other work outside the pilot. Scope and price are confirmed in writing before expanded work begins.
Quarterly Reviews
An Enrolled Agent reviews each quarter's expense reports, flags substantiation gaps while they are still fixable, and confirms your reimbursements stay on track.
Offered as a separate one-time purchase after setup. No automatic renewal.
Frequently Asked Questions
Common questions about this service area.
Related Guides
Learn more about this topic with our in-depth guides.
Small Business Tax Guide
Deductions, entity choices, and compliance essentials for small business owners.
Read GuideOne Big Beautiful Bill Act (OBBBA) Guide
Key 2026 tax law changes affecting deductions, credits, and compliance requirements.
Read GuideCalifornia Business Tax Guide
State-level taxes, fees, and filing obligations for California businesses.
Read GuideRelated Services
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Learn MoreBookkeeping
Monthly books that keep reimbursements categorized correctly and your records audit-ready.
Learn MoreUnsure Whether the California Pilot Fits?
Use the privacy-preserving screen on Accountable Plan Pro first. If your case needs manual review, book a short fit call before paying.
“Arc & Ledger provided exceptional service, making my tax preparation seamless and stress-free.”– Christian S., Google Review
We are scheduling new engagements from September 15.
Both reach the same Enrolled Agent review. After either one, you'll receive a secure Client Portal invitation to upload your documents.