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IRS Information letter 2016-0013 Documentation Required

EBIA a leader in employee benefits and compliance comments on IRS Information letter 2016-0013:

“Documentation Required Before Reimbursing Expenses. Letter 2016-0013 addresses a health FSA participant who questioned whether the TPA could ask for certain information from his doctor before reimbursing his claim for “supplements related to a medical condition.” The letter explains that health FSAs can only reimburse medical expenses that the employee substantiates, and that reimbursement of ineligible expenses puts the health FSA’s nontaxable status at risk. Concluding that the TPA’s request for information was reasonable, the letter notes that if an administrator determines that documents from a physician’s office are inadequate, it is the employee’s responsibility to submit any additional documentation needed for reimbursement”

We are often asked this exact questions read the full IRS Letter here: Letter 2016-0013