IRS Seeks to Audit for Debit Card Compliance
During a number of recent public appearances, Harry Beker, IRS chief of the health and welfare branch, office of the associate chief counsel, has urged employers to comply with the IRS debit card guidance (IRS Notice 2006-69). The Society of Professional Benefit Administrators (SPBA) has recently learned that the IRS is now actively seeking to audit employers for compliance with debit card rules.
IRS Notice 2006-69 creates one set of rules for healthcare provider merchants (i.e., physicians, hospitals, and other medical care providers) and another set of rules for non-healthcare provider merchants (those that do not have a healthcare provider merchant code). Plan participants should NOT be permitted to use a debit card at non-healthcare provider merchants who lack an "inventory information approval system," a system which compares purchased items to a list of items that qualify as medical expenses.
Click here for SPBA highlights which address additional key points of IRS Notice 2006-69. If you have any questions, please contact your BCI group sales executive. Thank you.
Return to Sitemap
Return to Home Page