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Substantiation Requirements in New IRC Sec. 125 Proposed Regulations
Deloitte
Oct. 2, 2007
Excerpt: The proposed regulations explicitly state that IRC § 125 plans must substantiate every expense as a precondition of payment or reimbursement. This rule will not be satisfied by substantiating only a percentage of claims, or substantiating only claims above a certain dollar amount. Also, additional substantiation requirements may apply depending on the type of expense being paid or reimbursed -- i.e., expenses for health care, dependent care, or adoption assistance.
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