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IIAS (IRS Notice 2007-2)


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Guest afreeling
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I have a question regarding the new IIAS requirements that go into affect 1/1/08. I understand that after December 31, 2007, health FSA or HRA debit cards may not be used at any store, vendor or merchant that does not have a health-care-related merchant category code unless the store, vendor or merchant has implemented an inventory information approval system as described in Notice 2006-69. My question is if anyone is aware if a merchant can only put the IIAS based on the terminal or if it is always for the entire store. For example, if Wegmans were to implement the IIAS, could there be a possibility that the IIAS would be active in the Pharmacy but not at the normal Check out aisles in the front of the store (kind of like having different merchant category codes at different terminals)? Thanks. :D

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