In a recent letter ruling the IRS responds to a taxpayer question about cash-out of unused qualified transportation benefits. The letter affirms as it has in the past that a qualified transportation benefit cannot be cashed out, see Benefit Beat. It can be carried forward to be used for qualified transportation and it can even be used for other forms of qualified transportation but in no instance can it be cashed out or transferred to another type of benefit.

As a reminder, a qualified transportation benefit includes the following:

Source: IRS Rev. Proc. 2023-34

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