Alert: IRS releases parking expense guidance

Under the Tax Cuts and Jobs Act, the cost of providing qualified transportation fringe benefits, such as parking and transit passes, are no longer deductible.

Changes not only apply to employers directly paying for these items but also to employer and employee contributions to transportation flexible spending accounts and to all costs incurred by employers who have a parking lot at an owned or leased building. This is effective for all costs incurred after December 31, 2017.