IRS Clarifies Treatment of Dependent Care Benefits
By EsqSocial Corporation 20/05/21
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 – part of the Consolidated Appropriations Act ("CAA") – allows an employer to amend its cafeteria plan to allow either an unlimited carryover or a 12-month grace period to apply under a dependent care flexible spending account ("dependent care FSA") for plan years ending in 2020 or 2021. Further guidance on this provision was provided by the IRS in Notice 2021–15, as discussed here in our prior Client Alert....
By: Dickinson Wright