In Notice 2012-38, the Internal Revenue Service (the “IRS”) is requesting public comments on issues associated with Revenue Ruling 2006-57. That Revenue Ruling provides guidance on the use of smartcards, debit or credit cards, or other electronic media to provide qualified transportation fringe benefits under sections 132(a)(5) and (f) of the Internal Revenue Code (the “Code”). Those benefits are tax-free. The Revenue Ruling became effective on January 1, 2012. However, the IRS has become aware that changes in fare media and transit benefit administration-including changes in technology, the increase in the number of transit systems and third parties providing electronic media for transit use and the trend away from using paper media- may have created the need for additional guidance. Hence the request for comments in the Notice. See the Notice for details.
Published By Stanley D. Baum, New York ERISA attorney, Of Counsel at Cary Kane LLP Handling matters in ERISA, employee benefits, disability, and employment law for employers, individuals and unions.