A new revenue ruling will shut down an abusive employment tax arrangement involving double employer reimbursements for an employee's parking expenses.

The ruling clarifies that employer reimbursements for parking aren't excludible from income and wages for employment tax purposes if the parking has already been paid for by the employee on a pre-tax basis (such as by salary reduction elections by employees). The ruling won't affect regular arrangements between employers and their employees that provide qualified parking benefits.

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