Under IRS rules, only certain types of transactions can be auto-substantiated (approved automatically without requiring you to submit additional documentation).
These include:
-
Transactions at merchants using the IIAS system
- The Inventory Information Approval System (IIAS) automatically checks whether an item is eligible and approves it at the point of sale. Common examples of merchants using IIAS systems include doctors offices, hospitals, and pharmacies.
- The Inventory Information Approval System (IIAS) automatically checks whether an item is eligible and approves it at the point of sale. Common examples of merchants using IIAS systems include doctors offices, hospitals, and pharmacies.
-
Copayments and certain recurring transactions
- Copays and some recurring expenses at healthcare providers and pharmacies may be auto-approved. Common examples include automatically refilled prescriptions or recurring copayments for physical therapy.
- Copays and some recurring expenses at healthcare providers and pharmacies may be auto-approved. Common examples include automatically refilled prescriptions or recurring copayments for physical therapy.
-
Transactions where merchants send real-time data
- Some healthcare providers and pharmacies transmit details directly at the time of purchase, allowing the transaction to be auto-substantiated. Examples vary based on the merchant.
Important to Know
Only the transaction types listed above qualify for auto-substantiation.
All other expenses require you to submit additional documentation to support your claim. To learn more, see When do I need to submit an explanation of benefits (EOB) or letter of medical necessity (LMN) for my pre-tax claim?