FSA, Acquisition, and Recoupment

[Guest KRH2010]

Here is the situation:

There is a company called Company A. Employees participate in an FSA:

* On January 1, 2010, assume $1,000 is available in John Smith's FSA.

* On June 30, 2010, Company A is sold to Company B. Former Company A employees now work at Company B.

* After the sale, FSA coverage continues under the Seller's plan (Company A) through the end of 2010. This follows Revenue Ruling 2002-32.

* However, for the remainder of 2010, the Buyer (Company B) deducts $500 from John Smith's pay check to re-imburse Seller for a portion of the FSA amount (recoupment).

Question: Does this violate the Uniform Coverage Rule and IRS Chief Counsel Advice No. 201012060?

Thanks for your input!