1.32.15. Public Transportation Subsidy Program (PTSP)

(1) The Public Transportation Subsidy Program (PTSP) was established to encourage employees to use mass public transportation when commuting to and from work. The benefits will be limited to the maximum monthly amount, excluded from income under section 132(a)(5) of the Internal Revenue Code.

(2) Purpose: This Internal Revenue Manual (IRM) contains policies and procedures for the PTSP. To provide benefits to enrolled participants to commute from their home to their permanent Post of Duty (POD).

(3) Audience: This IRM provides information for PTSP participants, managers, National Treasury Employee Union (NTEU) and employees who need more information concerning the program.

(4) Policy Owner: Human Capital Officer and Deputy Human Capital Officer.

(5) Program Owner: Associate Director, Ogden Payroll Center and the Public Transportation Subsidy Program Office develops and maintains this IRM.

(6) Primary Stakeholders: Public Transportation Subsidy Program Office and Department of Transportation.

(7) Program Goals: The PTSP will provide monthly and quarterly benefits to employees to use for commuting to/from work through mass transportation, as well as guidance on how to enroll, use benefits, and return benefits when not in use.

(1) To be eligible to receive an IRS PTSP transit benefit, employees must use mass public transportation to commute between their residence and their permanent POD or detail location of 90 days or more.

(2) The transit benefit is equal to the participant’s actual monthly commuting cost, up to the maximum nontaxable monthly amount allowed by law, regardless of the number of days the public transportation is used. View Publication 15-B, Employer’s Tax Guide to Fringe Benefits for the maximum amount.

(3) To remain eligible in the program, PTSP participants must submit a PTSP Recertification annually to certify their actual commuting cost.

(4) In the event of a furlough, temporary shutdown, or evacuation order, participants should not use the PTSP benefits until they receive a return-to-work order. If required to report to the office during a furlough or temporary shutdown, the employee should only purchase what is needed for their commute to/from their residence and post of duty (POD). They should purchase the most cost effective transit type for their commute (ex., if only reporting to their POD once a week, purchase a daily pass).

(5) Policy - Parameter of an eligible commute:

1. A commute is regular travel back and forth between the employee’s place of residence and official duty station during a 24-hour period. A place of residence will usually be the employee’s primary home, but may also include a place the employee stays regularly.

2. It requires that there be no immediate overnight stay between the home and work at a location away from the employee’s originating place of residence.

3. The complete round-trip between home and work is one that could reasonably be expected to occur on a regular basis, even if it does not, in fact, occur every weekday.

4. A commute need not occur every day; it may occur as infrequently as one time per period in accordance with the employee’s approved regular work and telework schedule.

5. A commute is not reasonable if the whole monthly transit benefit would be needed to cover a single one-way trip.

6. A commute must take place on official business day, defined as Monday through Friday unless otherwise defined by your office or applicable Collective Bargaining Agreement.

7. Transportation benefits may not be used to commute to an office other than your official post of duty (POD), case related work or for using public transportation to return to your residence for non-work days.

(1) There are three types of subsidy payments for PTSP participants.

1. The TRANServe credit card

2. Transit voucher are available only for locations that do not accept the TRANServe credit card.

3. Cash Reimbursement on a quarterly basis for vendors who only accept cash.

(2) The type of benefit distributed to the participant depends on the local transit authority’s acceptance of the transit benefit.

1. TRANServe Cards are funded one month prior to be used for the following months transit cost. For example, the TRANServe credit card is funded in January, the funds on the card are to be used for February’s transit cost.

2. The transit voucher is mailed out quarterly to the FMD.

3. The Cash Reimbursement benefit is equal to the participant’s actual monthly commuting cost, up to the monthly maximum allowed which is excluded from income by law. View Publication 15-B, Employer’s Tax Guide to Fringe Benefits for the maximum amount. Cash reimbursements are provided quarterly after incurring verified out-of-pocket commuting costs. Cash reimbursements are deposited in the participants Electronic Fund Transfer (EFT) account provided by payroll.

(1) The IRS PTSP transit subsidy benefit is equal to the participant’s actual monthly commuting cost. The maximum transit subsidy amount is determined by Congress each calendar year. View Publication 15-B, Employer’s Tax Guide to Fringe Benefits, for the maximum amount.

(2) Participants receiving an advance of the transit subsidy must estimate their commuting costs for the upcoming quarter to ensure the appropriate benefit amount is received at the quarterly distribution (applies only to participants who receive quarterly transit vouchers).

(3) Participants are not entitled to benefits for the days they do not use public transportation to commute to and from their residence and official POD. As a result, the benefits should be adjusted accordingly.

(4) Ideally, estimates should be as accurate as possible to avoid any benefit overpayment or underpayment.

(5) If the benefit was overestimated, the balance must be returned. There are three ways to return excess transit subsidy:

1. Return unused transit vouchers with Form 11664-G, PTSP Return of Fare Media, to the PTSP Analyst listed on the form.

2. Request less transit subsidy at the next distribution (applies only to participants who receive quarterly transit vouchers).

3. Send a personal check or money order payable to Internal Revenue Service, along with a completed Form 11664-G, PTSP Return of Fare Media. The form and check or money order should be mailed to the IRS-Debt Collection Office, P O Box 9002, Beckley, W. Va. 25802-9002. A Document Transmittal Form 3210 should be attached. The subject matter should be addressed as: “To Reimburse the IRS Account for Public Transportation Subsidy.” If paying by credit/debit card participants should input an OS GetServices ticket for PTSP Questions & Assistance for instructions on how to use pay.gov.

(1) IRS employees were transitioned to the TRANServe website in February of 2018. All new and/or current participants are required to complete all actions related to their PTSP benefits through the TRANServe website. To complete an action on the TRANServe website participants must be a registered user with a valid IRS e-mail address.

(2) The TRANServe website is accessible through the IRS network, personal computer, tablet or smartphone with an internet connection.

(3) All PTSP actions require the approval of the participant’s manager of record, PTSP Office Administrator, and the DOT. The participants manager of record must be registered on the TRANServe website and request elevation (through an OS GetServices, PTSP Questions & Assistance ticket) to the manager of record role, prior to the participant inputting an application, in order for the participants to select them as the first level approver. Managers have 15 business days to review and process (approve or disapprove) applications. It’s the participants responsibility to ensure their manager is taking timely action.

(4) All TRANServe applications have a comments section for participants to include necessary information. For example, listing the name of the vanpool driver and all other passengers, or including an alternate address for participants who need their TRANServe credit card mailed to a different address other than the application residence field and entering a return to office (RTO) date after an evacuation order or extended leave.

(1) All participants must have a SEID number and valid @irs.gov e-mail address to enroll in PTSP.

(2) All new participants must confirm completion of the PTSP Awareness Briefing, 19239 in ITM prior to submitting an enrollment in the TRANServe website.

(3) To apply for PTSP benefits, participants must be registered on the TRANServe website to complete their new transit application. The applicant’s manager of record must approve the new transit benefit application on the TRANServe website. Once the employee submits their application, the manager of record will receive a system generated e-mail from the TRANServe Administrator, notifying them that there is an application awaiting approval. The effective date for benefits is the date the manager approves an accurate application on the TRANServe website.

(4) After an application is approved by the participant’s manager of record, it is routed to the PTSP Administrative Office for review and processing (approval or disapproval). Once approved by the PTSP Administrative Office, the application is then routed to DOT for a final review and processing.

(5) Retroactive subsidies, prior to the effective date, are not authorized.

(6) If PTSP funding is not available at the time of the effective date, the participant may review the guidelines on submitting a PTSP cash reimbursement.

(7) If the applicant’s POD utilizes vouchers, the applicant should input a PTSP Questions & Assistance ticket through OS GetServces to confirm availability.

(1) Transit vouchers are distributed quarterly. Transit vouchers are only available for those areas that do not accept the TRANServe credit card.

(2) Participants can have vouchers mailed directly to their personal mailing address or to their assigned POD. In some instances vouchers are mailed to an assigned FMD at their POD.

(3) If a participant is unable to pick up their transit subsidy, they can designate a co-worker to pick up the subsidy on their behalf. Form 11664-E, PTSP Authorization for Third Party Pick-up, must be completely filled out and signed by the participant.

(4) The FMD and the PTSP Office do not maintain an inventory of undesignated transit vouchers.

(1) Employees who participate in the PTSP and who are separating from the Service, must complete the withdrawal request and have their manager approve the request timely within 15 business days on the TRANServe website prior to leaving the Service. If the employee is not able to or has already left the Service, it is the manager’s responsibility to request that they be withdrawn by submitting an OS GetServices ticket for PTSP Questions and Answers.

(2) Employees who participate in the PTSP who are separating from the Service, must return or destroy their TRANServe credit card, return transit vouchers or any pro-rated portion of benefit received in advance using Form 11664-G, PTSP Participant Return of Fare Media to the PTSP Office.

(3) Employees who participate in the PTSP and are furloughed, placed on extended leave, or Non-Work Status (NWS) are automatically withdrawn and must recertify their PTSP benefits upon return to service in order for benefits to be restored.

(4) Employees who have separated from the Service may be subject to a random review of their benefit usage to ensure no funds were used after leaving the Service. Any misused funds may be subject to collection from the IRS-Debt Collection Unit.

(1) If a participant uses or accepts PTSP Benefits when they are ineligible they are required to repay any amount used. This includes but is not limited to, participants who have retired, resigned withdrawn and/or are in possession of any unused or excess transit benefit that they have accepted or downloaded as a participants in PTSP.

(2) Repayments to the IRS must be submitted via check or money order to the IRS-Debt Collection Office, P O Box 9002, Beckley, W.Va. 25802-9002, or credit or debit card via pay,gov. If paying by credit/debit card, participants must input an OS GetServices ticket for PTSP Questions & Assistance to receive instruction on how to use pay.gov.

(3) Transit cards of any type cannot be returned to the Service or used as payment for excess benefit that has been accepted by program participants.

(4) PTSP benefits loaded to local transit cards (ex. Clipper, Breeze, SmarTrip, Ventra or SEPTA keycard, etc.) should not be return as they are not a form of repayment for unused funds. The participant should reimburse the IRS by submitting payment via check, money order, or credit, debit card via pay.gov to the IRS-Debt Collection Office. Checks and money orders must be made out to the Internal Revenue Service, along with a completed Form 11664-G, PTSP Return of Fare Media. The form and check or money order should be mailed to IRS-Debt Collection Office, P O Box 9002, Beckley, W.Va. 25802-9002. If paying by credit/debit card, participants must input an OS GetServices ticket for PTSP Questions & Assistance to receive instructions on how to use pay.gov

(1) Form 11664 - D - PTSP Cash Reimbursement Certification - This form may only be utilized when the Cash Reimbursement SharePoint Site is unavailable. Any forms submitted while the Cash Reimbursement SharePoint Site is available will not be accepted. The form should be submitted within 30 days after the end of the quarter by participants in those instances when the transit benefit is not accepted or available. Cash reimbursements are not authorized for participants who did not use the funds from the TRANServe credit card or failed to complete their annual recertification of benefits timely. Any approved cash reimbursement forms will have an electronic payment sent to their current EFT information.

(2) Form 11664 - E - PTSP Authorization for Third Party Pick-Up - The form is prepared and signed by the participant and given to the designated co-worker authorizing them to pick up their transit subsidy on their behalf.

(3) Form 11664-F - PTSP Signature Sheet for Up-Front Monthly/Quarterly Distribution - The FMD will present this form to participants at the transit benefit distribution. Participants sign and date the form indicating receipt and acceptance of the transit voucher.

(4) Form 11664-G - PTSP Participant Return of Fare Media - The form is submitted when an employee withdraws from the program, separates from the Service, or has expired or damaged transit subsidy. Participants should not write void or destroy the transit subsidy. The form is also used if the participant has received more transit subsidy than entitled. The participant should send the form along with a check or money order to the PTSP Office.

(1) Participants using Washington Metro Area Transit Authority's (WMATA) metro rail and/or bus system are required to purchase a SmarTrip card. You can purchase one by mail, online or at Metro's sales offices and area transit stores. SmarTrip cards must be registered with Metro at the time of purchase by telephone at 1-888-762-7874 or on-line at www.smartrip.com.

(2) SmarTrip cards must be registered to match the name in Discovery Directory on the IRS Source.

(3) The SmarTrip card must be registered prior to submitting a TRANServe application. The SmarTrip card number must be included on the TRANServe application. Failure to include the SmarTrip card number will result in a disapproved application and may cause a delay in benefits.

(4) Information pertaining to the use or functionality of the SmarTrip card may be found on the WMATA.com website.

(5) Unused SmartBenefits are automatically returned to the DOT at the end of each month.

(6) Lost, stolen, damaged or malfunctioning SmarTrip cards that have been registered, can be replaced without losing any of the fare value by contacting Metro at 1-888-762-7874. The PTSP Office cannot replace the funds or assist with the replacement of the SmarTrip card. Metro will transfer the balance to the new SmarTrip card and deduct the cost of a new card from your personal purse and mail it to you. Ensure the new card is registered and then complete a SmarTrip change application TRANServe website to update the SmarTrip card number to match the new number.

(7) Participants should not use their SmarTrip cards with the PTSP transit benefit for personal use at any time.

(8) Senior citizens (65 and older) and persons with disabilities may contact WMATA for information regarding the option to receive a reduced fare card offered under the WMATA senior/disabled SmarTrip guidelines.

(1) Employees on detail assignments may qualify for the IRS PTSP program.

1. Detail must be at least 90-days or more in order to be eligible. Any detail for less than 90-days is not eligible for PTSP benefits.

2. Employees who are already enrolled in the PTSP and are detailed for more than 90-days may update their current benefits to reflect any changes to the benefit amount needed. If the detail is less than 90-days and the cost to commute remains the same no change is needed. If the cost of your commute increases for a detail of less than 90 days, the difference in cost is the employee’s responsibility and not eligible for additional funding.

3. Employees who are not already enrolled in the PTSP may enroll if the detail is for 90-days or more. If the detail is less than 90-days, the employee may not enroll in the PTSP.

(1) Participants in the PTSP are not authorized to use the PTSP benefit for local in-and-around travel (i.e., case related meetings, site visits, union stewards., etc.). Local travel must be claimed via the ConcurGov program as a local travel authorization/voucher.

(2) A monthly or unlimited type pass may not be the most cost-effective/efficient mode of transportation for regular commute between residence and official POD based on work schedule. Local travel should not be considered when applying for PTSP benefits and/or as part of your monthly commute. Purchasing these types of passes for use outside of commuting between residence and official POD is not authorized.

(3) Participants cannot use PTSP benefits and file a local travel authorization/voucher for the same expenses.

(1) In partnership with DOT, TRANServe is a program to deliver transit benefits to participants through a branded federal credit card, called the TRANServe credit card. The TRANServe credit card provides a green, cost-efficient, all electronic method for employees to receive their monthly transit benefit.

(2) TRANServe credit card are accepted for the majority of transit providers throughout the United States.

(3) The TRANServe credit card must be activated upon receipt by contacting US Bank at the customer service number on the back of the card (1-888-994-6722 or 711 for hearing impaired). The Interactive Voice Response (IVR) system will guide the cardholder through the automated processed.

(4) Participants cannot receive a cash reimbursement for unused funds available on the TRANServe credit card.

(5) The TRANServe credit card must be returned to the participants manager of record when furloughed, on approved extended leave. If the employee is separating from the Service or withdrawing they can return the TRANServe credit card to the manager or destroy it.

(6) Management is responsible for the safekeeping of the card during this time and must return the TRANServe credit card to the furloughed employee upon their first day back to work status.

(7) Participant is responsible for recertifying their PTSP benefits through the TRANServe website upon return to work in order for benefits to be restored.

(8) Each time you use your TRANServe credit card you certify:

1. I am employed by the federal government.

2. I am eligible for a public transportation benefit.

3. I will only use the transit benefit for my daily commute to and from my residence and official POD.

4. I will not use the benefit for local visits to other offices.

5. I will not give, sell or transfer my transit benefit to anyone else.

6. I will not use the government-provided transit benefit in excess of the statutory limit.

7. I will not include parking fees in the computation of the daily, weekly or monthly commuting cost.

(9) Participants who move to a new POD within IRS and currently have a TRANServe credit card should keep the card and take it to their new POD. The card is still active and loaded with funds which can be used towards their new commuting cost. Participants must complete a change application through the TRANServe website for their updated commute to their new POD and include any applicable information in the comments for agency approver section.

(10) Participants who transfer to another agency must withdraw from the program and either return the TRANServe credit card using Form 11664-G PTSP Participant Return of Fare Media or destroy the card. If the participant does not withdraw from the IRS PTSP, they will not be able to enroll with another agency.

(1) The TRANServe credit cards are mailed by the contracted bank to the home address on the participants PTSP application unless otherwise directed by the participant.

(1) The PTSP Administrative Office encourages seniors to take advantage of senior and/or Medicare cardholder discounts. Check with your local transit authority to see if they offer senior discounts. Eligible participants can update their PTSP commuting cost by completing a rate change on the TRANServe website.

(1) PTSP participants who telework regularly should abide by the following:

1. Ensure the transit benefits requested matches the number of days in the office per your time and attendance records. Benefits can’t exceed the amount needed. Participants may contact their local transit authority for information and/or guidance on the most cost-effective/cost-efficient type of pass for their commute.

(1) For any natural disaster or evacuation order (i.e., pandemic condition) participants should always follow the guidelines provided by the PTSP Office. PTSP guidance will be made available to all IRS employees through multiples means of communications, including the IRS Source PTSP Page, IRS Daily news articles, Headlines articles, Leaders Alerts and targeted e-mails or United States Postal Service notifications/letters when applicable.

(2) Participants must ensure that they are not using PTSP benefits when not commuting via public transportation to/from residence and official POD, including any auto-pay services setup through their transit authority for automatic purchases. This will result in repayment of PTSP benefits.