In its first private letter ruling on a medical reimbursement program, the IRS responded to a taxpayer's request for guidance on a reimbursement plan for certain of its employees' expenses not covered under the company health insurance program (www. irs.gov/pub/irs-wd/0329014.pdf).* In its first private letter ruling on a medical reimbursement program, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. responded to a taxpayer's request for guidance on a reimbursement plan for certain of its employees' expenses not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. under the company health insurance program (www. irs.gov/pub/irs-wd/0329014.pdf). Because the plan met the requirements of revenue ruling 2002-41 and notice 2002-45, the IRS offered no explicit new guidance. But, in contrast to its requirements for flexible spending accounts flexible spending account, n an employee reimbursement account primarily funded with employee-designated salary reductions. Funds are reimbursed to the employee for health care (medical and/or dental), dependent care, and/or legal expenses and are , the IRS did not object to the taxpayer's practice of making available to employees at a given point in the benefit year only a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. portion of the amount obtainable from the reimbursement program for the entire year. |
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