In a Pickle! What-to-Do When There’s Cash on the Commuter Card but No Expenses

With so many employees working from home (or having quarantined) during (and after) the Coronavirus Pandemic, it’s not a new story that many have benefits remaining on their pre-tax commuter cards – but no commuter expenses, like train/bus/subway fares, to be paid with that money. The IRC Section 132(a)(5) rules for “qualified transportation fringes”  that apply to tax-advantaged commuter benefits prohibit any refunds or cash outs (even on a taxable basis) of the remaining account balance. 

READ NOW »

Related Content 

• Fringe Benefit Rules (IRC § 132)
  Learn more about the fringe benefit rules that apply to keep business expense reimbursements nontaxable (if you comply with the accountable plan rules) and allowing qualifying employee discounts and on-premises athletic facilities and subsidized employer cafeterias.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.    

• Tax Key Legal Developments Tracker (Federal)
  Stay informed on new developments: 
  • Business Entities. IRS and Treasury Department issue proposed regulations relating to the use of actuarial tables in valuing annuities, interests for life or a term of years, and remainder or reversionary interests. 87 Fed. Reg. 26,806 (May 5, 2022).
  • International Tax. IRS issues notice setting forth proposed changes to the qualified intermediary (QI) withholding agreement (QI agreement) described in Reg. § 1.1441-1(e)(5) and (6)that will permit a QI to assume withholding and reporting responsibilities for purposes of sections 1446(a) and (f). IRS Notice 2022-23.
• Document alert sallow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.
• The Practical Guidance Journal Spring 2022 Edition features guidance for employers on COVID-19 vaccination, testing, and employee health data protection; climate change disclosure market trends; and updates related to the Secured Overnight Financing Rate (SOFR).
• New and Recently Updated Practical Guidance Content
  • Ninth Circuit: Tax Return Considered Filed When Sent in Response to IRS Inquiry
  • The Russia-Ukraine War’s Impact on Global Workforce Mobility
  • New-Hire Reporting State Law Survey
  • The Economic Substance Doctrine: A U.S. Anti-Abuse Rule
  • Affirmative Transfer Pricing Adjustments

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+