The Internal Revenue Service will be gathering information on the use of debit, credit, or smart cards for transportation fringe benefits. The IRS is looking for input in a number of aspects that affect transit benefits. In recent press release, the Internal Foundation for Employee Benefits (IFEBP) states that the IRS is asking for information from employees and employers about how transit benefits are funded and how debit, credit, and smart cards are involved.
Some of the comments requested by the IRS include, whether terminal restricted debit cards are widely used and the availability of terminal restricted debit cards in areas where paper vouchers are no longer accepted. The IRS would also like to know what type of problems have come from the transition of paper vouchers to other methodologies. Any comments or questions regarding the use of debit, credit, or smart cards for transit benefits are due to the IRS before August 27, 2012.