The IRS has issued an alert regarding companies misrepresenting nutrition, wellness, and general health expenses as medical care for FSAs, HSAs, HRAs, and MSAs. This alert emphasizes the strict definitions of medical expenses under tax law, which do not typically include general health and wellness costs unless they are directly related to the diagnosis, cure, mitigation, treatment, or prevention of a disease.
How it affects you: Encourage clients to consult with you before making claims related to wellness and health expenses on their taxes, especially in light of the recent IRS alert. This proactive approach can help ensure compliance and avoid complications during the tax filing process.