IRS Answers Questions on Taxation of DCAPs and COVID-19 Relief
By EsqSocial Corporation 13/05/21
The Internal Revenue Service (IRS) has published Notice 2021-26 to provide answers regarding the taxability of benefits received in 2021 and 2022 under a dependent care assistance program (DCAP) that permits carryovers or extended grace periods. In a prior article, we discussed the carryovers and extended grace periods that were permitted as part of the Consolidated Appropriations Act, 2021. The notice clarifies that carryovers and extended grace periods will not cause DCAP benefits to be...
By: Bradley Arant Boult Cummings LLP