TaxNewsFlash-Exempt Organizations

September 3, 2008
No. 2008-84

PRINTABLE VERSION

IRS Further Delays Effective Date for Certain Qualified Transportation Fringe Benefits

The IRS today released an advance copy of Notice 2008-74 which delays the effective date of guidance provided to employers in Rev. Rul. 2006-57 concerning the use of smartcards, debit or credit cards, or other electronic media which provide employees with qualified transportation fringe benefits under Code section 132.

According to today’s guidance, the effective date for implementing the guidelines under Rev. Rul. 2006-57 was originally set for January 1, 2008, but subsequently was delayed until January 1, 2009.

The IRS today stated that because certain mass transit systems continue to experience “technology barriers,” the effective date for application of the guidance under Rev. Rul. 2006-57 is further delayed until January 1, 2010. However, the IRS noted that employers can rely on Rev. Rul. 2006-57 with respect to transactions occurring before 2010.

For an electronic version of today’s guidance (two pages): Notice 2008-74

For an electronic version of Rev. Rul. 2006-57: Rev. Rul. 2006-57

Notice 2008-74 will appear in Internal Revenue Bulletin 2008-38, dated September 22 2008.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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