EXCEPTION TO INFORMATION REPORTING REQUIREMENTS RELATED TO CERTAIN HEALTH ARRANGEMENTS.

SEC. 1203. EXCEPTION TO INFORMATION REPORTING REQUIREMENTS RELATED TO CERTAIN HEALTH ARRANGEMENTS.(a) In General.—Section 6041 of the Internal Revenue Code of 1986 (relating to information at source) is amended by adding at the end the following new subsection:“(f) Section Does Not Apply to Certain Health Arrangements.—This section shall not apply to any payment for medical care (as defined in section 213(d)) made under—“(1) a flexible spending arrangement (as defined in section 106(c)(2)), or “(2) a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106.”.(b) Effective Date.—The amendment made by this section shall apply to payments made after December 31, 2002.