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A retailer has multiple locations around the country. The headquarters office established an arrangement allowing transit passes to be purchased pursuant to a compensation reduction agreement, as permitted by the Code and Regs. This arrangement is available to any employee anywhere in the country.

At the same time, some of the satellite locations have been handing out transit pass vouchers to employees in their local office.

Anything preventing an employee from receiving a voucher directly from the employer and also being eligible to purchase vouchers through compensation reduction? The only issue that I see as a direct problem is that having both increases the possibility that the $100 per month limit will be exceeded, resulting in some taxable income to an employee. Anyone see any problems in addition to that?

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