The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for healthcare flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus […]
Read More...Today, the Internal Revenue Service announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes (generally referred to as cost-of-living increases). Revenue Procedure 2019-44 provides details about these annual adjustments. The 2020 tax items of greatest interest to our clients that are […]
Read More...Today, the Internal Revenue Service announced the tax year 2019 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes (generally referred to as cost-of-living increases). Revenue Procedure 2018-57 provides details about these annual adjustments. The 2019 tax items of greatest interest to our clients that are […]
Read More...A. IRS Provides Guidance on Correcting Health Care FSA Reimbursement Mistakes. The IRS has released a Chief Counsel Advice (CCA) memorandum that provides guidance on correcting HCFSA payments for expenses that are not properly substantiated or are later determined to be ineligible for reimbursement (improper payments). Issues addressed include whether the correction procedures for improper […]
Read More...Yesterday the IRS provided some relief for non 1/1 HCFSA plans. Under current law there is no dollar-limit-cap on HCFSAs. However, since HCFSAs contain a “uniform coverage provision”, meaning that the entire annual election is made available on the first day of the plan year, employers self-regulate their HCFSAs caps. Employers that are worried about […]
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