[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