Fringe benefits.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

Rev. Rul. 2006-57 sets out guidance for employers on the use of smartcards and debit cards to provide qualified transportation fringe benefits under Sec. 132(f).

In the ruling, four fact patterns illustrate whether employer-provided transportation benefits provided through smartcards, debit or credit cards or other electronic media are excluded from gross income under Sec. 132(a)(5) and (f) and from wages for employment tax purposes.

In three situations, the employer-provided benefits are...