Have you participated in your employer’s qualified transportation fringe benefit plan and have a balance remaining on your transit pass because you no longer use it to commute to work due to the COVID-19 pandemic? Unfortunately, the IRS says you can’t receive a cash refund. In Information Letter 2020-0031, the IRS stated that if an employee who has a balance remaining ceases to be a participant in the employer’s qualified transportation fringe benefit plan, the employee cannot be refunded any balance remaining. On the plus side, an employee may use the remaining balance on the transit pass with no negative tax consequences even if the trips aren’t for commuting purposes. Contact the Cg Team with questions. © 2021
06
Mar