Peter F. & Maureen L. Speltz - Page 14

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          fide employee.  See secs. 105(b),(e), and 106(a); Larkin v.                 
          Commissioner, 48 T.C. 629, 635 (1967), affd. 394 F.2d 494 (1st              
          Cir. 1968); Tschetter v. Commissioner, T.C. Memo. 2003-326 (there           
          need not be a written plan or enforceable employee rights under             
          the plan so long as the participant has notice or knowledge of              
          the plan); sec. 1.105-5(a), Income Tax Regs.                                
               Respondent argues that Mr. Speltz’s medical premiums and               
          reimbursements should not be excluded from petitioners’ income              
          because there was no proper plan under section 105(b).                      
          Alternatively, if there was a proper plan, respondent argues that           
          notice or knowledge of the plan was not reasonably available to             
          Mr. Speltz.  Respondent also argues that Mr. Speltz did not meet            
          his contractual obligations under the “client data sheet” to work           
          12.5 hours each week.  Finally, respondent argues that Mr. Speltz           
          was not an employee of the daycare.  We address each argument in            
          Whether There Was a Proper Plan                                             
               Section 105(b) and the underlying regulations provide                  
          guidelines as to what constitutes an accident and health plan.              
          See sec. 105(e); sec. 1.105-5(a), Income Tax Regs.  A plan may be           
          nonfunded or funded, insured or uninsured, it may cover one or              
          more employees, and different plans may exist for different                 
          classes of employees.  See sec. 105(e); Wigutow v. Commissioner,            
          T.C. Memo. 1983-620 (the regulation contemplates a plan for the             

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