We would like you to be aware that the IRS has posted new guidelines for FSA Medical reimbursement in Bulletin 2007-50 and have updated the dependent definition in Notice 2008-5.

Important information in IRB 2007-50 includes commentary on Revenue Ruling 2007-71, concerning 2008 covered compensation tables, Ruling 2007-72, regarding diagnostic medical procedures, and Announcement 2007-112, which revises Procedure 2007-65, 2007-45 IRB 967 regarding “Safe Harbor”.

Notice 2008-5 clarifies the definition of “dependent” under section 152(d) as well as clarifying the definitions of “qualifying child” and “qualifying relative” under the Code.

The IRS has changed the current medical mileage reimburseable rate to $0.19 per mile. For each mile driven as part of a certifiable medical necessity, claimants are now allowed reimbursement of $0.19 per mile.

Click here to read the IRS ruling detailing this change.