U.S. Chamber Comments on REG-119307-19: Qualified Transportation Fringe, Transportation and Commuting Expenses under Section 274

August 20, 2020

Office of Associate Chief Counsel (Income Tax and Accounting)

Attention: Patrick Clinton

Internal Revenue Service (I.R.S.)

1111 Constitution Avenue, NW Washington, DC 20224

CC:PA:LPD:PR (REG-119307-19)

Room 5203

Internal Revenue Service

P.O. Box 7604

Ben Franklin Station Washington, D.C. 20224

Via Federal eRulemaking Portal

RE: Comments on REG-119307-19: Qualified Transportation Fringe, Transportation and Commuting Expenses under Section 274.

Dear Sir or Madam:

The U.S. Chamber of Commerce appreciates the opportunity to provide feedback on REG-119307-19, proposed regulations to implement legislative changes to section 274 of the Internal Revenue Code (Code) effective for taxable years beginning after December 31, 2017, specifically addressing the elimination of the deduction under section 274 for expenses related to certain transportation and commuting benefits provided by employers to their employees in taxable years beginning after December 31, 2017, as published in the Federal Registeron June 23, 2020.

The attached chart identifies issues arising under REG-119307-19 and provides suggested solutions as well as any additional explanation the Chamber believes would be helpful in addressing the issue. This feedback is the product of extensive conversations with a very wide array of impacted Chamber members. These comments may be considered as representing some of the most serious issues but are not all the issues concerning Chamber members on REG-119307-19.

The Chamber appreciates the opportunity to provide this feedback on REG-119307-19. The Chamber strongly urges Treasury and the I.R.S. to continue to work closely with the business community to implement the recent tax changes in a manner to ensure as little disruption as possible to normal business operations and that this law encourages the U.S. economy to achieve its true growth potential. The Chamber looks forward to working with you to address these and other issues as we work to implement our new, pro-growth tax code. Thank you for your time and attention.

Sincerely,

Caroline L. Harris

Cc: Charles P. Rettig, Commissioner, Office of the Commissioner, Internal Revenue Service,

U.S. Department of the Treasury

David J. Kautter, Assistant Secretary, Office of Tax Policy, U.S. Department of the Treasury

William M. Paul, Deputy Chief Counsel (Technical), Office of the Chief Counsel, Internal Revenue Service, U.S. Department of the Treasury