Priv. Ltr. Rul. 202311001 (Mar. 17, 2023)

Out there at https://www.irs.gov/pub/irs-wd/202311001.pdf

In a closely redacted personal letter ruling, the IRS has concluded that the price of a product that was “neither drugs nor a drug however slightly meals” was not a medical care expense underneath Code § 213(d). The product had been really useful by an toddler’s physician however was out there with no prescription. The toddler’s mother and father represented that the product was formulated to be protected for an toddler’s consumption whereas offering an unspecified substance that would scale back the toddler’s future threat of a selected situation. On the time, nevertheless, the toddler had no recognized sickness brought on by that situation, nor was there an imminent likelihood of such an sickness.

As help, the letter cited a 1955 income ruling holding that the price of particular meals or drinks will qualify as medical care bills provided that they’re prescribed and brought solely to deal with or alleviate a particular sickness, usually are not a part of the person’s dietary wants, and the necessity for them is substantiated by a doctor. In line with the letter, the income ruling didn’t help a call within the household’s favor as a result of the toddler didn’t have an sickness, and the product had dietary worth aside from its represented advantages in stopping the situation. The letter additionally cited a 2002 income ruling (see our Checkpoint article) holding that people collaborating in a weight-loss program couldn’t deal with the price of reduced-calorie weight loss plan meals as a medical care expense as a result of the reduced-calorie meals substituted for meals they’d usually devour.

EBIA Remark: This ruling is in keeping with earlier IRS steerage on particular meals (see our Checkpoint article) and the requirement of an present or imminently possible sickness (see our Checkpoint article). Code § 213(d) defines medical care bills as quantities paid for the analysis, remedy, mitigation, therapy, or prevention of illness, or for the aim of affecting any construction or operate of the physique. Bills that merely profit a person’s basic well being or well-being usually are not thought of to be for medical care (see our Checkpoint article). For extra data, see EBIA’s Cafeteria Plans guide at Sections XX.D (“Bills Reimbursed Should Be for Medical Care”), XX.L.4 (“Particular Meals”), and XX.M (“Desk of Widespread Bills, Displaying Whether or not They Are for ‘Medical Care’”). See additionally EBIA’s Shopper-Pushed Well being Care guide at Sections XV.C (“What Is an HSA-Certified Medical Expense?”) and XXIV.B (“HRAs Might Reimburse Solely Code § 213(d) Bills”).

Contributing Editors: EBIA Employees.