Article Date:
February 2007

Word Count:



S Corporation Loses Child Care Deductions

Frank Settimo was the single owner of his S corporation. His wife and about 24 other people worked for the corporation.


The corporation employed Frank’s wife, Sallyn. Because they had four children between the ages of 2 and 10, the corporation paid for child care for the children so Sallyn could work.


The IRS contested the child care deduction.


Settimo asserted that the corporation should get the deduction under revenue ruling 73-348. That ruling allowed a deduction because child care enabled ... Log in to view full article.

Log in to view full article
Already a subscriber?
Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee