{"abstract":"This document contains final regulations to implement legislative changes to section 274 of the Internal Revenue Code (Code) effective for taxable years beginning after December 31, 2017. Specifically, the final regulations address the elimination of the deduction under section 274 for expenses related to certain transportation and commuting benefits provided by employers to their employees. The final regulations provide guidance to determine the amount of such expenses that is nondeductible and apply certain exceptions under section 274(e) that may allow such expenses to be deductible. These final regulations affect taxpayers who pay or incur such expenses.","action":"Final Regulations.","agencies":[{"raw_name":"DEPARTMENT OF TREASURY","name":"Treasury Department","id":497,"url":"https://www.federalregister.gov/agencies/treasury-department","json_url":"https://www.federalregister.gov/api/v1/agencies/497","parent_id":null,"slug":"treasury-department"},{"raw_name":"Internal Revenue Service","name":"Internal Revenue Service","id":254,"url":"https://www.federalregister.gov/agencies/internal-revenue-service","json_url":"https://www.federalregister.gov/api/v1/agencies/254","parent_id":497,"slug":"internal-revenue-service"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2020/12/16/2020-27505.html","cfr_references":[{"chapter":null,"citation_url":null,"part":"1","title":26}],"citation":"85 FR 81391","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Effective Date: These regulations are effective on December 16, 2020.","disposition_notes":null,"docket_ids":["TD 9939"],"dockets":[],"document_number":"2020-27505","effective_on":"2020-12-16","end_page":81409,"executive_order_notes":null,"executive_order_number":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2020/12/16/2020-27505.xml","html_url":"https://www.federalregister.gov/documents/2020/12/16/2020-27505/qualified-transportation-fringe-transportation-and-commuting-expenses-under-section-274","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/2020-27505?publication_date=2020-12-16","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2020-12-16/2020-27505/mods.xml","not_received_for_publication":null,"page_length":19,"page_views":{"count":10585,"last_updated":"2026-10-23 12:15:06 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2020-12-16/pdf/2020-27505.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2020-27505.pdf?1608039919","publication_date":"2020-12-16","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2020/12/16/2020-27505.txt","regulation_id_number_info":{"1545-BP49":{"issue":"202010","html_url":"https://www.federalregister.gov/regulations/1545-BP49/qualified-transportation-fringes-and-entertainment-expenses-under-section-274","title":"Qualified Transportation Fringes and Entertainment Expenses Under Section 274","xml_url":"http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202010&RIN=1545-BP49&operation=OPERATION_EXPORT_XML","priority_category":"Substantive, Nonsignificant"}},"regulation_id_numbers":["1545-BP49"],"regulations_dot_gov_info":{"supporting_documents":[],"regulatory_plan":{"html_url":"https://www.federalregister.gov/regulations/1545-BP49/qualified-transportation-fringes-and-entertainment-expenses-under-section-274","title":"Qualified Transportation Fringes and Entertainment Expenses Under Section 274"},"comments_count":0,"agency_id":"IRS","comments_url":"https://www.regulations.gov/docketBrowser?rpp=50&so=DESC&sb=postedDate&po=0&dct=PS&D=IRS-2020-0019","supporting_documents_count":0,"docket_id":"IRS-2020-0019","document_id":"IRS-2020-0019-0017","regulation_id_number":"1545-BP49","title":"Qualified Transportation Fringe, Transportation and Commuting Expenses under Section 274 (REG-119307-19)","checked_regulationsdotgov_at":"2020-12-18T04:30:09Z"},"regulations_dot_gov_url":null,"significant":false,"signing_date":null,"start_page":81391,"subtype":null,"title":"Qualified Transportation Fringe, Transportation and Commuting Expenses Under Section 274","toc_doc":"Qualified Transportation Fringe, Transportation and Commuting Expenses","toc_subject":null,"topics":["Income taxes","Reporting and recordkeeping requirements"],"type":"Rule","volume":85}