Yesterday, the U.S. Senate passed what is known as the extender bill (Tax Increase Prevention Act of 2014, HR 5771) and the president is expected to sign it. As we discussed in our previous blog on this subject, this bill give parity for transit passes and parking and is retroactive back to January 1, 2014. Effective January 1, 2014, (no that is not a typo, I meant 2014) transit passes are increased to $250 per month.
This happened in 2012/2013 and the IRS had to issue guidance on how to handle Forms W-2 etc. This guidance was contained in Notice 2013-8. It appears the IRS will issue the same guidance again for 2014. We will keep you posted as more information comes in.