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I left a job for a new opportunity about 2 months back. I had spent most of my FSA funds for the year. There was one particular charge of $760 that they came back to me, needing more detailed explanation of the services. I called over and over again to the medical facility but they were never able to provide me an itemized receipt.
Now I can log in and see that the claim was denied (several weeks after employment ended). If I was still working at the company, the procedure would be for me to pay the company $760 (or them to withold from my paycheck) and then the $760 gets added to my FSA balance. Since I am no longer employed I am wondering what my legal obligations are here. Anyone know?
One of the fsa reps I talked to once said they would end up sending you a 1099 at the end of the year for a taxable distribution. She also mentioned that you could still report it as a legitimate medical expense and debate the issue with the irs.
Was your fsa paid off for the year?