An employer can provide employees transit passes in the form of debit cards that will be considered qualified transportation fringe benefits. In one case, an employee tried to use the debit card to purchase fare on public transportation, but it didn’t work. The employee paid in cash instead. The IRS Chief Counsel addressed the question, if the employer reimburses the employee for the cash she used, has the employee received a qualified transportation fringe benefit? According to Chief Counsel Advise, the cash reimbursement wouldn’t be a qualified transportation fringe benefit, because the debit card was readily available. A card malfunction doesn’t negate that fact. (CCA 201949019). Call or visit our website for more information! www.mjscpa.com/
