IRS Mandated Debit Card Substantiation Requirements Effective July 1st 2009

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Please be advised that as of July 1st, 2009 per IRS Notice 2008-104 your debit card may no longer work at certain locations.

The IRS no longer permits the use of debit cards that are linked to Flexible Spending Accounts (FSAs) or Health Reimbursement Arrangements (HRAs) to be used at non certified pharmacies or non medical vendors. The card will continue to work at doctor’s and dentist’s offices, hospitals, and all Inventory Information Approval System compliant vendors. Click here to see a list of IIAS certified vendors.

If you are permitted by your employer to use your card at a pharmacy that has self certified per the 90% Rule but does not have an[ IIAS system in place then you will have to submit receipts for all transactions made at these locations (for a list of these pharmacies click here). Your debit card will be turned off if you fail to submit receipts within 30 days of the transaction.

Click here to view IRS Notice 2008-104

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