IRS Information Letter: Rolling Over Unused Transit Benefits to Another Qualified Transportation Benefit (IRC §132)

An employee is not precluded from rolling over unused transit benefit amounts through the use of another qualified transportation fringe, such as qualified parking, to the extent the benefit is offered by the employer’s plan and does not exceed the maximum monthly amount for the respective qualified transportation fringe benefit, the IRS determined. Taxpayer used to take public transportation to commute to work, but due to Covid-19 he is now using his personal vehicle to drive to work. Taxpayer seeks to rollover unused transit benefits into a parking account. The IRS considers a fringe benefit provided by an employer to ...