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Tax News: IRS Eliminates Qualified Transport Fringe Benefit


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6/24/2020
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The Internal Revenue Service ("IRS") has proposed rules to amend section 274 of the Internal Revenue Code (the "Code") effective for taxable years beginning after December 31, 2017.

The Tax Cuts and Jobs Act (TCJA) does not allow deductions for qualified transportation fringe (QTF) expenses and does not allow deductions for certain expenses of transportation and commuting between an employee's residence and place of employment.

These proposed regulations specifically address the elimination of the deduction for expenses related to QTFs provided to an employee of the taxpayer. The proposed regulations also provide guidance and methodologies to determine the amount of QTF parking expense that is nondeductible.

Specifically, the proposed regulations address the elimination of the deduction under section 274 for expenses related to certain transportation and commuting benefits provided by employers to their employees in taxable years beginning after December 31, 2017. The proposed regulations provide guidance to determine the amount of such expenses that is nondeductible and apply certain exceptions under section 274(e) that may allow such expenses to be deductible. These proposed regulations affect taxpayers who pay or incur such expenses.

For any questions or assistance, please contact the Tax Attorneys at Fazzio Law, we are in your corner!



Category: Tax


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