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Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
I hate to be the bearer of bad news, but you cannot do as you propose
Unfortunately, you would have to reimburse your plan as you did not have the procedure done as planned in 2012.
The big drawback to using an FSA account is if you don't use it you lose it.
So, there is no way to pay tax on these funds and keep them.
I'm truly sorry this is not the news you had hoped to hear
The funds lost do not go to the IRS, ironically they go to your employer
these offset the situations where people leave the company after using all of their FSA balance without having the full amount withdrawn from their paychecks
I see. Well thanks for your assistance. You also answered another question I had about leaving the company before all deductions could be made. Well, I'll just have to deal with this I guess.
Thanks again for your help.
I'm truly sorry. I wish I had more good news to give you
If you would, please rate my response as "excellent" so that I may receive credit for assisting you today
No worries. It's not your fault. At least I know now.
Knowledge is power, right.
Yes, if you leave the company before your deductions is made then the employer is stuck with the cost
So, the employer keeps the "lost" funds
It's ironic that they do not go to the IRS
A cozy arrangement.
Yes, I don't personally participate in these plans for that reason. I'm always afraid I won't use my funds
I'd do it only if I had a procedure early in the year that I knew the cost before open enrollment ended