Super clear breakdown, thanks Mike! One benefit of still following a proper accountable plan process for a single-member LLC has nothing to do with taxes, but helps keep the LLC "veil" more intact in case of a law suit. The more the business is clearly operating separately from the owner personally, the better the protection.
What happens if the employee who were over reimbursed did not pay back the S Corp. Shoud the S Corp perform an internal audit within the Accoutable Plan?
