MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

A Lot of Accountants Miss This...

31 Oct 2025 · 1 min

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In this brief instructional video, Mark Kohler explains that the IRS requires business owners to have "accountable provisions"—specific clauses that can be attached to tax returns or recorded in corporate minutes. He warns that many accountants overlook these provisions, especially when using DIY tax software like TurboTax. Kohler outlines the key provisions: reimbursement for home office expenses, reimbursement for auto expenses of board members or family helpers, and the de minimis safe‑harbor allowing immediate expensing of items under $1,500 without depreciation. He stresses that each provision must be documented in the company minutes; otherwise, the IRS can disallow the related deductions during an audit. The overall message is a cautionary, no‑brainer reminder to ensure these provisions are properly recorded to avoid audit problems.

Chapters

If you're a business owner, the IRS requires that you have what are called accountable provisions. These are provisions that you can attach to your tax return or document in your company minutes. And a lot of accountants are going to miss this. And especially if you're knocking out your return on TurboTax, we make sure there are six or seven different accountable provisions that are always included. For example, I want to write off my home office. Please reimburse me. I want to write off auto expenses of any board member or family member that's helping in the business. Please make that happen. Third, I want to write off any expense under $1,500 immediately without having to deprec it. Boom. In this is the de minimis accountable provision. So all of these little provisions need to be in your minutes. And if you get audited, the irs, do you have this provision? It's not in your tax return. That's right here in my minutes. Oh, done. If you don't have this provision on your tax return or in your minutes, they can disallow medical reimbursements. Home office, the auto, the write off. This is serious. We want to make sure that you don't have a problem with the IRS in an audit. It's just a no brainer.