U.S. Reps. Darin LaHood (R-IL) and Brad Wenstrup (R-OH) commended recent action by the Internal Revenue Service (IRS) to provide relief to American taxpayers with Health Flexible Spending Accounts (FSAs) and Dependent Care Flexible Spending Accounts (DCFSAs).
The IRS announcement follows an April 24 bipartisan letter Rep. LaHood, Rep. Wenstrup, and several colleagues sent to the Trump administration requesting additional flexibility for FSA beneficiaries.
“I am pleased that the administration incorporated some of our recommendations, and I will continue to work with my colleagues to ensure families get needed relief in the wake of COVID-19,” Rep. LaHood said in a May 13 joint statement released with Rep. Wenstrup.
“I thank the administration for incorporating some of my recent recommendations to give more flexibility for FSA and DCFSA utilization,” Rep. Wenstrup said. “As this crisis wears on, Congress must be ready to make additional statutory changes as needed so that Americans can fully utilize their savings, and I look forward to that continuing work.”
Specifically, the IRS will provide taxpayers greater flexibility by extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through Dec. 31.
Additionally, the IRS will expand the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic, according to the lawmakers’ statement.
“The announcement by the Trump administration to give patients who utilize FSA and DCFSA accounts more flexibility is welcome news for my constituents,” said Rep. LaHood. “COVID-19 is leaving an impact on all Americans and families shouldn’t be penalized or lose healthcare savings because of this unexpected pandemic.”
“This coronavirus pandemic has thrown a wrench in many of our plans, and individuals and families with Health and Dependent Care Flexible Spending Accounts shouldn’t be penalized because of these unforeseen events,” added Rep. Wenstrup.