IRS Skeptical of Companies Marketing Pre-Tax Health Food Costs

Workers should be cautious of companies that market methods for using qualified pre-tax health savings accounts for food costs, according to an IRS official.

Meal kit companies partnering with telemed providers to accept workers’ excess health savings account and flexible spending account dollars might be encouraging fraud, said Kevin Knopf, attorney-adviser in the IRS Office of Chief Counsel at a conference hosted by the American Bar Association’s tax section in San Francisco.

“It’s come to our attention that these companies are telling people they can turn food and exercise into eligible expenses with a doctor’s note,” Knopf said. “Some are ...