@hemakumari-itsno
Two questions I am struggling with are:
1) For home office, utilities etc., are not reimbursable as EMPLOYEE. These should be treated as S-corp expenses right? does these really fall under accountable plan? If doesn't fall under accountable plan, can I pay one single amount at year end towards these expenses and mark as expense?
As long as you have an accountable plan and your home office is used as your principal place of business and it is used exclusively for a home office then, yes, you can be reimbursed by the S-corp. Keep in mind that means that the office must be used 100% for business use and that you do not have another location where you regularly perform the same duties as in your home office.
2) Other expenses (like phone, some other expenses paid from CC like registration cost or website cost etc.,) these fall under accountable plan right? I read online that, receipts need to submitted with-in 60 days AND company should pay within couple of days of of receipts submission is this correct? -- In summary, can the payment for reimbursement happen anytime after the receipts submission (or) should be done in specified time?
The 60 days is not a hard and fast rule, it's a safe harbor. It means that the IRS will not challenge any substantiation made within 60 days of the employee expense being paid or incurred. That doesn't mean you can't reimburse yourself beyond 60 days, it just means that the IRS could challenge it in the case of an audit. Since you are the only member of the LLC, you are the only employee as well as the employer. For your LLC to comply with accountable plan rules, one of the three requirements is that the expenses must be substantiated within a "reasonable period of time". "Reasonable" depends on the facts and circumstances of your situation. Since you are both the employee and employer, it would be hard for the IRS to argue that the expenses were not substantiated to the employer within a reasonable period of time given you are the employer.
