Darryl L. DePriest is the seventh presidentially appointed and Senate-confirmed Chief Counsel for the Office of Advocacy.
Prior to joining the Small Business Administration Office of...
IRS Requests Comments on Potential Modification of Use or Lose Rule for Health FSAs.
On May 30, the Internal Revenue Service (IRS) issued Notice 2012-40 to provide guidance on health flexible spending arrangements (health FSAs). Among other things, the IRS notice requests comments on the potential modification of the “use or lose rule” for health FSAs. Currently, the use or lose rule prohibits any contribution or benefit under an FSA from being used in a subsequent plan year or period of coverage. Thus, unused amounts in the health FSA are simply forfeited at the end of the plan year.
Comments are due by August 17, 2012.