Attempts to qualify a spouse as an employee in a husband-wife farming operation for family medical benefits go back decades.1 The battle is likely not over even with a favorable taxpayer decision by the Tenth Circuit Court of Appeals in 2011.2 That decision only binds the Internal Revenue Service in the Tenth Circuit area (six states – Colorado, Kansas, Oklahoma, New Mexico, Utah and Wyoming). Tax Court decisions issued over the years provide “substantial authority”3 to the contrary elsewhere in the United States.4
Harl, Neil E.
"Employing the Spouse to Qualify for Medical Benefits,"
Agricultural Law Digest: Vol. 23
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol23/iss3/1