The IRS has issued proposed regulations about employer-provided transportation and commuting benefits.

June 24, 2020

The proposed regs reflect provisions of the 2017 Tax Cuts and Jobs Act that disallow deductions for qualified transportation fringe expenses provided to employees. The disallowed deductions are effective for amounts paid or incurred after 12/31/17.

The proposed regs cover situations including a taxpayer owning or leasing parking facilities. If a taxpayer owns or leases all or a portion of one or more parking facilities, the disallowance may be calculated using a general rule or any one of three simplified methodologies.

Contact us for more information.