Qualified Transportation Fringe, Transportation and Commuting Expenses Under Section 274; Correction
| Published date | 28 April 2021 |
| Citation | 86 FR 22345 |
| Record Number | 2021-08391 |
| Section | Rules and Regulations |
| Court | Internal Revenue Service,Treasury Department |
Federal Register, Volume 86 Issue 80 (Wednesday, April 28, 2021)
[Federal Register Volume 86, Number 80 (Wednesday, April 28, 2021)]
[Rules and Regulations]
[Pages 22345-22346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08391]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9939]
RIN 1545-BP49
Qualified Transportation Fringe, Transportation and Commuting
Expenses Under Section 274; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to the final regulations
(Treasury Decision 9939), that were published in the Federal Register
on Wednesday, December 16, 2020. The final regulations provide guidance
regarding the elimination of the deduction for expenses related to
certain transportation and commuting benefits provided by employers to
their employees. The final regulations affect taxpayers who pay or
incur such expenses.
DATES: These corrections are effective on April 28, 2021 and applicable
for taxable years beginning on or after December 16, 2020.
FOR FURTHER INFORMATION CONTACT: Patrick Clinton of the Office of
Associate Chief Counsel (Income Tax and Accounting), (202) 317-7005
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9939) that are the subject of this
correction are issued under section 274 of the Internal Revenue Code.
Need for Correction
As published on December 16, 2020 (85 FR 81391), the final
regulations (TD 9939) contain errors that need to be corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805.
* * * * *
0
Par. 2. Section 1.274-13 is amended by revising the fifth sentence of
paragraph (d)(2)(ii)(A) and the first sentence of paragraph (f)(8)(iv)
to read as follows:
Sec. 1.274-13 Disallowance of deductions for certain qualified
transportation fringe expenditures.
* * * * *
(d) * * *
(2) * * *
(ii) * * *
(A) * * * In addition, the exception to the disallowance for
amounts treated as employee compensation provided for
[[Page 22346]]
in section 274(e)(2) and in paragraph (e)(2)(i) of this section cannot
be applied to reduce a section 274(a)(4) disallowance calculated using
this methodology. * * *
* * * * *
(f) * * *
(8) * * *
(iv) * * * The primary use of H's leased parking facility under
paragraph (d)(2)(ii)(B)(2) of this section is not to provide parking to
the general public because 60% (60/100 = 60%) of the lot is used by its
employees. * * *
* * * * *
Crystal Pemberton,
Senior Federal Register Liaison, Legal Processing Division, Associate
Chief Counsel, (Procedure and Administration).
[FR Doc. 2021-08391 Filed 4-27-21; 8:45 am]
BILLING CODE 4830-01-P
