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IRS Guidance on Using Smartcards and Debit Cards to Provide Mass Transit Benefits
Deloitte 
Dec. 12, 2006
Excerpt: [Revenue ruling 2006-57] confirms that employers do not have to require employees to substantiate how they use smartcards or debit cards that can be used to purchase only transit passes. However, substantiation is required if the smartcard or debit card can be used for other purposes.
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