IRS Notice 2021-26 Clarifies Taxation of Dependent Care Assistance Programs:
By EsqSocial Corporation 21/05/21
On May 10, 2021, the IRS issued Notice 2021-26, which provides guidance regarding the taxation of dependent care assistance benefits provided through a Code Section 125 cafeteria plan, available in tax years ending in 2021 and 2022 due to the application of certain temporary pandemic relief provisions relating to the carry-over of unused balances from one plan year to the next and extended grace periods for incurring expenses. For calendar year plans, the guidance is all good news; non-calendar...
By: Verrill