Employee Benefits-IRS Provides Guidance On Qualified Transportation Fringe Benefits

In Revenue Ruling 2014-32, the Internal Revenue Service (the “IRS”) provides guidance on:

(1) whether certain employer-provided transportation benefits, provided through electronic media, are excluded from gross income under Code sections 132(a)(5) and 132(f) (and from wages for employment tax purposes) (concluding that in some cases “yes”, in other cases “no”);

(2) whether, under certain facts, qualified transportation fringe benefits include delivery charges incurred by an employee in acquiring transit passes (concluding “yes” under those facts); and
(3) whether, under certain facts, qualified transportation fringe benefits can be provided through a bona fide reimbursement arrangement (concluding “no”, beginning after 2015).
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