IRS delays debit card rules for transit benefits

IRS rules allowing automatic substantiation of tax-free transit expenses paid by employees using smartcards or debit cards will take effect Jan. 1, 2011. Despite the delayed effective date -- the third since 2006 -- employers may rely on the rules through 2010. Transit expenses paid with cards other than the smartcards and debit cards allowed under the rules must be substantiated to qualify as tax-free.   (Select News, 4 Jan 2010)

• Full text of Notice 2009-95 (IRS, 15 Dec 2009) (PDF)

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