SIMERPU RESEARCH · SOURCE RECAP
IRS Releases Guidance Denying Favorable Tax Treatment to Certain Wellness Program Incentive Payments
SIMERPU recap and commentary: Mardy Gould
Opened — main text retrieved
Quick recap
Explains the 2023 CCA’s treatment of wellness incentives unrelated to unreimbursed medical expenses and the resulting withholding issues.
SIMERPU’s viewpoint
This explanation highlights the connection between a wellness incentive and an unreimbursed medical expense. SIMERPU would identify the payment trigger and the expense record before applying the article’s analysis to another program. The underlying facts make the withholding discussion more useful to an employer.
What this source contributes
The article focuses attention on the payment trigger and its connection to unreimbursed medical expenses.
What remains unanswered
An employer still needs the actual policy, expense records and payroll treatment to apply that analysis.
Mardy Gould’s take
I would ask for one complete example showing why the employee receives the payment. If it is described as reimbursement, show the relevant expense and what other coverage paid. That allows payroll and benefits teams to discuss the same transaction and makes the withholding explanation easier to understand.
Questions I would bring to the conversation
1. What event creates the payment entitlement?
2. What expense remains unreimbursed?
3. How is the resulting payroll treatment documented?
Mardy Gould · Co-Founder, SIMERPU →
What would change our assessment?
A verified expense-based entitlement or another material factual distinction could change the comparison with the article’s example.
Read the original source
The original author and publisher are credited below. Continue to their article, document or source page for the complete context.
Original Author: WLG
Publisher: The Wagner Law Group
Original Publication Date: 2023-06-28
Read this alongside…
Each connection has a specific purpose. Compare the sources’ facts, positions and publication dates as you read.
CCA 202323006 — Tax Treatment of Employer-Funded, Insured, Fixed-Indemnity Wellness Policy
IRS Office of Chief Counsel
Source position: Neutral / explanatory
Read the primary memorandum analyzed in the article.
Read the SIMERPU recap →
CCA 201622031 — Tax Treatment of Wellness Program Benefits and Employer Reimbursement of Premiums Provided Pre-tax Under a Section 125 Cafeteria Plan
IRS Office of Chief Counsel
Source position: Neutral / explanatory
Compare the earlier discussion of wellness participation rewards.
Read the SIMERPU recap →
Frequently asked questions about medical expenses related to nutrition, wellness and general health
IRS
Source position: Neutral / explanatory
Clarify the medical-purpose question for the underlying activity.
Read the SIMERPU recap →
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About this source
Original Updated Date: 2023-06-29 (page metadata)
Source Type: Law firm analysis
Model Discussed: IRS Chief Counsel Memorandum Number: 202323006
Position: Critical
Period: Recent — 2023–2026
Retrieved: October 31, 2026
Research and date notes
No additional retrieval note.
Each record identifies the material retrieved. SIMERPU’s viewpoint and Mardy Gould’s take are editorial commentary; the source-position label describes the original source’s stance. Read the original and its qualifications when evaluating a particular arrangement.
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