IRS proposes new "family-friendly" dependent care reimbursement rules.

The IRS has proposed regulations that are intended to clarify and replace existing provisions concerning dependent care expenses necessary for gainful employment. The new rules [REG-13059-02] specifically address the types of expenses that can be considered for purposes of taking the dependent care credit on the federal income tax return. However, it is those expenses that are, according to IRC Sec. 21, reimbursable on a tax-free basis through an employer's dependent care assistance plan (DCAP). So, the expanded list of reimbursable expenses may war rant a change in the wording of your employer's plan, to ensure that employees get the full benefit. At the very least, as word of the IRS's revisions spreads through the working parents' grapevine, you can …