and Ashley Gillihan
are co-authors of “Déjà vu in 2002: IRS Ruling strikes down ‘Son of Double Dip’ (A ZEBRA Cannot Change its Stripes),” ECFC FLEXFAX
, December 11, 2002. Earlier this year, the IRS addressed the merits of a questionable “double dip arrangement” in Rev. Rul. 2002-3. Now, as predicted the IRS has issued further guidance addressing hybrid double dip arrangements. More specifically, in Rev. Rul. 2002-80, the IRS struck down arrangements that purport to provide tax-free “advance reimbursements” of potential future unreimbursed medical expenses as well as “loans” that are either offset by unreimbursed medical expenses or forgiven.