IRS provides reporting relief for credit and debit cards for FSAs and HRAs.(Internal Revenue Service)(Flexible Spending Accounts)(Health Reimbursement Accounts )(Brief Article)

Revenue Ruling 2003-43 addressed the use of employer-provided debit, credit and stored value cards for use to pay expenses reimbursed by health flexible spending accounts (FSAs) and health reimbursement accounts (HRAs). In that guidance, the Internal Revenue Service (IRS) stated that payments to medical providers using these cards would have to be reported using Form 1099-MISC. Since one of the purposes of the cards was to make health FSAs and HRAs cheaper and easier to manage, this requirement was considered counterproductive. As part of the Medicare Prescription Drug, Improvement, and …