The IRS has delayed the effective date of Revenue Ruling 2006-57, which provides guidance to employers on the use of smartcards, debit or credit cards, or other electronic media to provide qualified transportation fringes under sections 132(a)(5) and (f) of the Code. This guidance will provide relief to mass transit providers that have been unable to update their systems in order to comply with the Revenue Ruling guidelines prior to the current effective date of Jan. 1, 2011. This will allow certain transit systems additional time to adapt their technology and achieve compatibility requirements. The effective date is further delayed until Jan. 1, 2012.

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