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2008

90 Percent Rule Update - IRS NOTICE 2008-104


The IRS has made a significant change pertaining to the implementation date for the 90% rule. The Rule will require that for a pharmacy to be eligible to accept FSA and/or HRA linked debit cards a pharmacy must either have an IIAS in place or have 90% or more of their gross sales from eligible items.

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Medical Mileage Rate Decrease Effective January 1, 2009


Effective January 1, 2009, the standard mileage reimbursement rates for medical and moving purposes have decreased from the current rates. As a reminder, the use of an automobile to obtain medical care may be a deductible medical expense if the expense is primarily for, and essential to, medical care.

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New Transportation Fringe Benefit to Bicycle Commuters


The benefit -- up to $20 per month -- begins with the new year in 2009. Employers may reimburse employees, tax free, for "reasonable" expenses related to their bike commute, including equipment purchases, bike purchases, repairs, and storage if the bicycle is used as a "substantial part" of the commuter's trip to work for the month.

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Breaking News--Increased 132 Transit Limits for 2009 Just Announced


The qualified transportation monthly limits for 2009 are increased to $120 for commuter transit and $230 for parking. (See Rev. Proc. 2008-66.)

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IRS Issues Guidance on FSA Distributions for Military Reservists


IRS Notice 2008-82 was issued jointly by the Treasury Department and the Internal Revenue Service (IRS) and provides guidance for “qualified reservist distributions” (QRDs) that are provided for in the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART).

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IRS Delays Implementation of Transportation and Debit Card Regulations


The purpose of this notice is to delay the effective date of Revenue Ruling 2006-57, 2006-2 C.B. 911. Revenue Ruling 2006-57 provides guidance to employers on the use of smartcards, debit or credit cards, or other electronic media to provide qualified transportation fringes under Internal Revenue Code §§ 132(a)(5) and 132(f).

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Summary of Notice 2008-59 Guidance on Health Savings Accounts


The Treasury Department and the Internal Revenue Service released Notice 2008-59 on June 25, 2008. A summary of the Notice is included here.

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Proposed Regulations Regarding HSAs


The Internal Revenue Service (IRS) and the U.S. Treasury Department have issued Proposed Regulations regarding Health Savings Accounts (HSAs).

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HEART ACT (Heroes Earnings Assistance and Relief Tax Act) Signed Into Law


The Heroes Earnings Assistance and Relief Act of 2008, which was recently signed into law by President Bush, is a new law whose purpose is to address the payments made to individuals who have been called to active military service.

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IRS Announces Mid-Year Increase in Mileage Rates for Transportation to Obtain Medical Care


Due to recent gasoline price increases, the IRS has announced in Announcement 2008-63 dated June 24, 2008, an eight-cent mid-year increase in the standard mileage rate for calculating the cost of using an automobile to obtain medical care.

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Automatic Dependent Care Reimbursements


Submit just one claim form each year and receive reimbursements automatically each pay period.

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IRS Issues 2009 Index Amounts for Health Savings Accounts


The new 2009 maximum annual HSA contribution has been raised to $3000 for individuals with self-only coverage and to $5950 for family coverage.

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