Qualified Transportation Fringes
The purpose of this notice is to delay the effective date of
Revenue Ruling 2006-57, 2006-2 C.B. 911. Revenue Ruling 2006-57 provides
guidance to employers on the use of smartcards, debit or credit cards,
or other electronic media to provide qualified transportation fringes
under Internal Revenue Code §§ 132(a)(5) and 132(f).
The ruling’s effective date was set for January 1, 2008. In
2007, however, Treasury and the IRS became aware that certain transit
systems needed additional time to modify their technology and make
it compatible with the requirements for vouchers set forth in Revenue
Ruling 2006-57. Consequently, Treasury and the IRS delayed the effective
date of Revenue Ruling 2006-57 until January 1, 2009. See Notice
2007-76, 2007-40 I.R.B. 735. Certain transit systems continue to
experience technology barriers to achieving compatibility with the
requirements for vouchers. Therefore, the ruling’s effective
date is further delayed until January 1, 2010. Nevertheless, employers
and employees may rely on Revenue Ruling 2006-57 with respect to transactions
occurring prior to January 1, 2010. The principal author of this notice
is Don M. Parkinson of the Office of Associate Chief Counsel (Tax
Exempt & Government Entities). For further information regarding
this notice, contact Don M. Parkinson at (202) 622-6040 (not a toll-free
call).