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Update to "The Problem with Parking"

In late March, the IRS released an updated Publication 15b – “Employer’s Tax Guide to Fringe Benefits” for use in 2018. The updated publication reflects most (but not all) of the substantial changes made by the Tax Cuts and Jobs Act to the taxation of various fringe benefits, including employer paid parking. On page 21 of the updated publication, and as discussed in last month’s article in Benefits News (available here: The Problem with Parking and Other Fringe Benefits Under Tax Reform), the IRS has now clarified that parking is not deductible to an employer, even if paid for through a salary reduction “qualified transportation plan.” Note - the updated IRS publication does reflect a number of the changes under 2017’s tax reform, but does not address the new excise taxes that apply to certain tax exempt organizations – see our article in last month’s publication (available here: Beyond the Tax Cuts – The 2017 Tax Act Includes a New Excise Tax on Exempt Organization), so employers should still look to the law and not rely solely on the IRS publication when addressing tax issues.

© Boutwell Fay LLP 2018, All Rights Reserved. This handout is for information purposes only, and may constitute attorney advertising. It should not be construed as legal advice and does not create an attorney-client relationship. If you have questions or would like our advice with respect to any of this information, please contact us. The information contained in this article is effective as of March 30, 2018.

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