IRS Provides Guidance on Transit Passes and Parking Benefits

摘要

Qualified transportation fringe benefits offer tax savings for both employees and employers because they are excluded from income and employment taxes. The Internal Revenue Service (IRS) recently released additional guidance for employers on how they can use smartcards or debit cards to provide tax-free transit passes and parking benefits to their employees. The IRS provides clarification of specific issues such as the rollover of unused pretax amounts and ways that businesses can provide these transportation benefits to employees while minimizing substantiation requirements.