Acceptable Transit Authorities
On January 1, 2012, IRS Revenue Ruling 2006-57 took effect. This ruling, which has been delayed several times, adds additional restrictions to the usage of Transportation Benefit Debit Cards. Beginning on January 1, 2012 any Transportation Benefit Debit Cards with HR Concepts are restricted for use at merchant terminals which only sell transit fare media. Details of the IRS rulings related to the use of commuter benefit debit cards in association to the IRS Section 132(f) Qualified Transportation Fringe Benefit can be found here.
The regulation indicates that the benefit card must be terminal restricted so that the transactions are limited to POS terminals that sell only transit fare media. Please review the acceptable transit ID list found here to determine which transit authorities are in compliance with
the IRS ruling.