The Internal Revenue Service has provided guidance on the monthly transit benefit that was extended in the fiscal cliff deal earlier this month and how employers who paid more than the maximum exclusion limit can fix the discrepancy.

Section 132(a)(5) of the Tax Code provides that any fringe benefit that is a qualified transportation fringe can be excluded from gross income. A qualified transportation fringe benefit provided by an employer to an employee can include any transit pass, transportation in a commuter highway vehicle between home and work, and qualified parking.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access