On April 27, 2010, the Internal Revenue Service issued Notice 2010-38 that gives guidance on the income tax treatment of health care benefits provided to children in the year before they attain age 27. The notice addresses a hole left by the Patient Protection and Affordable Care Act of 2010 and the Health Care and Education Reconciliation Act of 2010 ("Health Care Reform"), which provides that effective as of March 30, 2010, reimbursements for health care provided to a child through the end of the year in which a child attains age 26 will be tax free. Health Care Reform, however, did not provide a similar exclusion from taxation for the value of coverage provided.
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