What is the name of your state (only U.S. law)? Colorado
I missed the deadline to claim our reimbursement for the money we put into our "dependent care flexible account" (huge mistake, I know!). The claim is for the $5,000 maximum (07/13-06/14) and the deadline to file the claim was 11/30/14. I filed an appeal on 12/02 to the company that disburses the funds (ASI Flex) and they denied our request. They said that they need to abide by the deadlines set by my employer and to file an appeal with them by 02/01/15.
So, I called employer and talked to a benefits counselor and she gave me the "there's nothing we can do" message. She said that I can file an appeal but that they "rarely" grant them because they have to abide to IRS regulations.
I have read online that the IRS regulations are related to "if you don't use it, you loose it." We did use the $5,000 but failed to claim it within the grace period. I understand that the deadlines for filing are set by the employer. So, the IRS "loose it" regulation does not apply to missing the deadline to file the claim, instead it is the employers deadline?
A couple of other questions to prepare how best to present my appeal to the benefits department:
1) Do you have any suggestions as to how to best present my case (IRS documentation, legal precedents)? What resources can a cite/download/print to substantiate the IRS's position on what they regulate vs. what is at the discretion of the company? How should I proceed?
2) If the appeal is not granted, is there any way to claim it as a loss in our taxes?
3) Is this a case ($5,000) worth consulting with a tax/IRS legal counsel?