,,ii #aaf? ,,congress #b;d ,session ,s4 #dcgb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #cj1 #bjbj,ms4 ,smi? introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide = unus$ b5efits 9 a dep5d5t c>e ,,fsa to be c>ri$ ov] f #bjbj to #bjba1 to provide = b5efits to be access$ aft] t]m9ation ( employm5t1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,dep5d5t ,c>e ,exp5se ,relief ,act ( #bjbj4 #b4 ,c>ry ov] ( dep5d5t c>e ,,fsa b5efits f #bjbj 7a7 ,9 g5]al ,not)/&+ any applicable rule or regulation "u section #abe or #abi ( ! ,int]nal ,rev5ue ,code ( #aihf-- 7#a7 a dep5d5t c>e flexible sp5d+ arrangem5t %all p]mit p>ticipants :o make ! c]tification "u subsection 7b7 to c>ry ov] any am\nt ( unus$ b5efit or contribution 7)\t limitation7 f any plan ye> beg9n+ or end+ 9 #bjbj to ! subsequ5t plan ye> "u rules simil> to ! rules applicable to heal? flexible sp5d+ arrangem5ts1 & 7#b7 a plan or o!r arrangem5t %all n fail to be treat$ z a cafet]ia plan or dep5d5t c>e flexible sp5d+ arrangem5t m]ely because su* plan or arrangem5t p]mits ! c>ryov] "u p>agraph 7#a74 7b7 ,c]tification by employee ,9 apply+ = ! c>ryov] "u subsection 7a77#a71 ! employee %all c]tify t ! am\nt to be c>ri$ ov] is attributable to a r$uction 9 expect$ dep5d5t c>e exp5ses 9 ! plan ye> due to a r$uction 9 "w h\rs1 lack ( available dep5d5t c>e1 or bo?1 or o!r factors z det]m9$ by ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 due to ! outbreak ( coronavirus disease #bjai 7,,covid-#ai7 9 ! ,unit$ ,/ates4 7c7 ,p5alty 7#a7 ,9 g5]al ,!re is h]eby impos$ a tax on ! failure ( a cov]$ cafet]ia plan to meet ! requirem5ts ( subsection 7a77#a7 ) respect to any employee4 7#b7 ,am\nt ( tax 7,a7 ,9 g5]al ,! am\nt ( ! tax impos$ by p>agraph 7#a7 on any failure ) respect to an employee %all be #ajj = ea* day 9 ! noncompliance p]iod ) respect to su* failure4 7,b7 ,noncompliance p]iod ,= purposes ( ?is subsection1 ! t]m noncompliance p]iod means1 ) respect to any failure1 ! p]iod-- 7i7 beg9n+ on ! date su* failure fir/ occurs1 & 7ii7 end+ on ! e>li] (-- 7,i7 ! date su* failure is correct$1 or 7,,ii7 ! date :i* is #f mon?s aft] ! date ! employee t]m9ates employm5t ) ! employ]4 7,c7 ,limitations ,rules simil> to ! rules ( subsections 7b77#c7 & 7c7 ( section #dihj;,b ( ! ,int]nal ,rev5ue ,code ( #aihf %all apply ) respect to ! tax "u ?is section4 7#c7 ,cov]$ cafet]ia plan ,= purposes ( ?is subsection1 ! t]m cov]$ cafet]ia plan means a cafet]ia plan "u :i* a b5efit is provid$ ?r\gh employ] contributions to a dep5d5t c>e flexible sp5d+ arrangem5t4 7#d7 ,liability = tax ,rules simil> to ! rules ( section #dihj;,b7e7 ( ! ,int]nal ,rev5ue ,code ( #aihf %all apply = purposes ( det]m9+ liability = ! tax impos$ "u ?is section4 7#e7 ,collection ( tax ,! tax impos$ by p>agraph 7#a7 %all be collect$ 9 ! same mann] z ! tax "u section #dihj;,b ( su* ,code4 7d7 ,def9itions ,any t]m us$ 9 ?is section :i* is also us$ 9 section #abe ( ! ,int]nal ,rev5ue ,code ( #aihf or ! rules or regulations !reund] %all h ! same mean+ z :5 us$ 9 su* section or regulations4 7e7 ,plan am5dm5ts ,a plan or arrangem5t %all n be treat$ z violat+ ! requirem5ts ( subsection 7a77#a7 7includ+ = purposes ( subsection 7c771 if-- 7#a7 ! plan or arrangem5t is am5d$ to meet su* requirem5ts on or be=e ,decemb] #ca1 #bjbj1 7#b7 su* am5dm5t applies retroactively to any plan ye> end+ 9 #bjbj1 & 7#c7 ! plan or arrangem5t op]ates 9 accordance ) su* requirem5ts at all times aft] ! date ( ! enactm5t ( ?is ,act4 ,a plan or arrangem5t %all n be treat$ z fail+ to satisfy any requirem5t ( ! ,int]nal ,rev5ue ,code ( #aihf m]ely because ! plan or arrangem5t op]ates z provid$ 9 subp>agraph 7,c74 #c4 ,sp5d-d[n ( b5efits 9 dep5d5t c>e flexible sp5d+ acc\nts 7a7 ,9 g5]al ,*apt] #dc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dihj ! foll[+ new section3 #dihj;,a4 ,treatm5t ( unus$ b5efits 9 dep5d5t c>e flexible sp5d+ arrangem5ts 7a7 ,g5]al rule ,!re is h]eby impos$ a tax on ! failure ( a cov]$ cafet]ia plan to meet ! requirem5ts ( subsection 7c7 ) respect to any employee4 7b7 ,am\nt ( tax 7#a7 ,9 g5]al ,! am\nt ( ! tax impos$ by subsection 7a7 on any failure ) respect to an employee %all be #ajj = ea* day 9 ! noncompliance p]iod ) respect to su* failure4 7#b7 ,noncompliance p]iod ,= purposes ( ?is section1 ! t]m noncompliance p]iod means1 ) respect to any failure1 ! p]iod-- 7,a7 beg9n+ on ! date su* failure fir/ occurs1 & 7,b7 end+ on ! e>li] (-- 7i7 ! date su* failure is correct$1 or 7ii7 ! date :i* is #f mon?s aft] ! date ! employee t]m9ates employm5t ) ! employ]4 7#c7 ,limitations ,rules simil> to ! rules ( subsections 7b77#c7 & 7c7 ( section #dihj;,b %all apply ) respect to ! tax "u ?is section4 7c7 ,di/ributions aft] t]m9ation ( employm5t ,a cov]$ cafet]ia plan meets ! requirem5ts ( ?is subsection only if ! cafet]ia plan provides t1 if an employee :o is receiv+ b5efits provid$ ?r\gh employ] contributions to a dep5d5t c>e flexible sp5d+ arrangem5t ceases 7:e!r volunt>ily or involunt>ily7 to "w = ! employ] dur+ ! plan ye>1 ! employee may elect to be reimburs$ f unus$ b5efits = dep5d5t c>e exp5ses incurr$-- 7#a7 aft] ! date ! employee t]m9ates employm5t ) ! employ]1 & 7#b7 be=e ! la/ day ( su* plan ye> 7includ+ any grace p]iod "u ! arrangem5t74 7d7 ,cov]$ cafet]ia plan ,= purposes ( ?is section1 ! t]m cov]$ cafet]ia plan means a cafet]ia plan "u :i* a b5efit is provid$ ?r\gh employ] contributions to a dep5d5t c>e flexible sp5d+ arrangem5t4 7e7 ,def9itions ,any t]m us$ 9 ?is section :i* is also us$ 9 section #abe ( ! ,int]nal ,rev5ue ,code ( #aihf or ! rules or regulations !reund] %all h ! same mean+ z :5 us$ 9 su* section or regulations4 7f7 ,liability = tax ,rules simil> to ! rules ( section #dihj;,b7e7 %all apply = purposes ( det]m9+ liability = ! tax impos$ "u ?is section4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = *apt] #dc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #dihj ! foll[+ new item3 ,sec4 #dihj;,a4 ,treatm5t ( unus$ b5efits 9 dep5d5t c>e flexible sp5d+ arrangem5ts4 4 7c7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to plan ye>s end+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,plan am5dm5ts ,a plan or arrangem5t %all n be treat$ z violat+ ! requirem5ts ( section #dihj;,a7c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is ,act 7includ+ = purposes ( section #dihj;,a7a7 ( su* ,code1 z s add$71 if-- 7,a7 ! plan or arrangem5t is am5d$ to meet su* requirem5ts on or be=e ! la/ day ( ! fir/ plan ye> end+ aft] ! date ( ! enactm5t ( ?is ,act1 7,b7 su* am5dm5t applies retroactively to su* fir/ plan ye>1 & 7,c7 ! plan or arrangem5t op]ates 9 accordance ) su* requirem5ts at all times aft] ! date ( ! enactm5t ( ?is ,act4 ,a plan or arrangem5t %all n be treat$ z fail+ to satisfy any requirem5t ( ! ,int]nal ,rev5ue ,code ( #aihf m]ely because ! plan or arrangem5t op]ates z provid$ 9 subp>agraph 7,c74 #d4 ,dep5d5t c>e exp5ses ,z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all issue su* int]im or tempor>y rules or guidance z are necess>y to exp& ! def9ition ( dep5d5t c>e exp5ses eligible to be reimburs$ f a dep5d5t c>e flexible sp5d+ arrangem5t1 to acc\nt = *anges 9 ! dep5d5t c>e ne$s ( taxpay]s due to-- 7#a7 ! em]g5cy involv+ ,f$]al prim>y responsibility det]m9$ to exi/ by ! ,presid5t "u section #eja7;b7 ( ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act 7#db ,u4,s4,c4 #eaia7;b77 ) respect to coronavirus disease #bjai 7,,covid-#ai71 & 7#b7 ! national em]g5cy decl>$ by ! ,presid5t "u ! ,national ,em]g5cies ,act 7#ej ,u4,s4,c4 #afja et seq47 ) respect to coronavirus disease #bjai 7,,covid-#ai74 ,su* rules or guidance %all rema9 9 effect until ! la/ day ( ei!r su* em]g5cy1 :i*ev] is lat]4