News You Can Use: IRS Guidances

IRS Issues Guidance on Cafeteria Plan Distributions to Reservists Called to Duty
This past week the Internal Revenue Service ("IRS") issued guidance on implementing provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 or "HEART," relating to health Flexible Spending Accounts (FSAs) in cafeteria plans. See IRS Notice 2008-82. The HEART legislation was passed overwhelmingly by the House and Senate in late May and signed into law by President Bush in June. This legislation provides tax relief to members of the armed forces, particularly reservists who are called to active duty and those who are killed in the line of duty. See the June 20, 2008, edition of CAB eNEWS for a complete discussion of the HEART Act.

Thanks to SMART for the heads up.