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Part 1. Organization, Finance and Management

Chapter 32. Servicewide Financial Policies and Procedures

Section 15. Public Transportation Subsidy Program (PTSP)

1.32.15  Public Transportation Subsidy Program (PTSP)

1.32.15.1  (03-01-2006)
Overview of the Public Transportation Subsidy Program

  1. The Internal Revenue Service Public Transportation Subsidy Program (PTSP) was established to encourage employees to use public transportation when commuting to and from work. This action essentially improves air quality, reduces traffic congestion, and conserves energy by reducing the number of single occupancy vehicles on the road.

  2. Those employees using public transportation to commute to and from work may apply for transit subsidy benefits under the IRS PTSP.

  3. Eligible employees, using an authorized public transportation method, will receive an employer-provided fare subsidy to apply toward their monthly transit costs.

  4. IRS will pay the transit benefits from appropriated funding, using stipulated guidelines.

  5. Transit benefits are not taxable to the participant and are not included in the Form W-2.

1.32.15.1.1  (03-01-2006)
Authority

  1. The IRS PTSP was implemented as a result of:

    1. Federal Workforce Transportation, Executive Order 13150, dated April 21, 2000.

    2. Public Transportation Program , Treasury Directive 74-10, dated November 3, 2000.

  2. These directives are based on:

    1. Energy Policy Act of 1992, Pub. L. No.102-486.

    2. Deficit Reduction Act of 1984 (26 USC §132).

    3. Federal Employees Clean Air Incentives Act, Pub. L. No. 103-172 (5 USC §7905).

    4. Transportation Equity Act for the 21st Century, Pub. L. No. 105-178.

  3. Additional References:

    1. Revenue Ruling 99-7 defines a non-temporary work location.

    2. IRS Memorandum on Parking Policy, dated 7-9-2002 specifies that appropriated funds are not used for employee parking, that parking is a personal expense, and it reiterates the Government's position to encourage the use of public transportation.

    3. IRS/NTEU Letter of Understanding, dated 10-20-2000 discusses the service wide implementation of the PTSP.

    4. IRS/NTEU Memorandum of Understanding, dated 5-5-2003 discusses the channeling of customer service requests to the Employee Resource Center.

  4. The Computer Matching and Privacy Protection Act of 1988, Pub. L. No. 100–503 amended the Privacy Act of 1974 to protect the subjects of Privacy Act records whose records are used in automated matching programs. Before covered computer matches (that may result in adverse action against match subjects) can be conducted, the required Federal Register notice, computer matching agreement, and reports for OMB and Congress must be approved.

1.32.15.1.2  (03-01-2006)
Definitions

  1. Public transportation - transportation provided in a mass transit vehicle or commuter highway vehicle. Public transportation vehicles include privately owned and operated vanpools and buspools.

  2. Private vanpool- a privately owned highway vehicle that seats at least six adults and one driver, and uses 80% of total mileage to transport to and from work. On trips for this purpose, the number of riders must be at least 50% of the adult seating capacity (not including the driver).

  3. Local transit authority - an area vendor that provides transportation.

  4. Transit subsidy- a subsidy or benefit to offset public transportation commuting cost to and from work.

  5. Transit pass/voucher - a subsidy instrument (non-cash) that is either accepted by the local transit authority as fare payment, or exchanged for an acceptable form of payment. The transit pass is tax free and issued in advance.

  6. Cash reimbursement - a subsidy instrument (check) issued to reimburse transit expense in those instances when the transit pass is not accepted or available.

  7. Distribution site - an IRS site where participants can pick up their transit pass.

  8. Post of duty (POD) - an employees' assigned work location.

  9. Non-temporary work location - a location where employment is realistically expected to last for more than one year, or there is no realistic expectation that it will last for one year or less, regardless of whether it actually exceeds one year.

  10. Time-sensitive fare media - a fare payment for use within a specified timeframe (i.e. monthly pass, annual pass).

  11. Standard Employee Identifier (SEID) - a computer generated alpha numeric string that provides a unique identifier for each IRS employee, eliminating the need for social security number identification. SEID numbers are found on the Discovery Directory or Outlook.

  12. Subsidized parking space - a space that is specifically assigned to an employee and paid for by the Service.

  13. Carpool - a highway vehicle that seats less than six adults and one driver.

1.32.15.2  (03-01-2006)
Responsibilities

  1. Agency Wide Shared Services, Employee Support Services, Travel Services Branch, provides program oversight for the agency's Public Transportation Subsidy Program (PTSP). The PTSP function will:

    1. Administer the contract with the Department of Transportation.

    2. Provide technical advice and assistance to customers and stakeholders.

    3. Perform program reviews.

    4. Ensure there is no disclosure of Privacy Act protected PTSP information to a contractor before first securing the approval of the Offices of Governmental Liaison and Disclosure and Mission Assurance. See IRM 11.3.24, Disclosures to Contractors, for requirements.

    5. Ensure there is no computer matching of PTSP participants' records, without first securing approval of the Office of Governmental Liaison and Disclosure. This is especially critical if there is potential for adversely affecting the participants. See IRM 11.3.39, Disclosure of Official Information - Computer Matching and Privacy Protection Act, for requirements.

    6. Ensure separating employees are removed from the IRS program.

    7. Provide website for distribution schedules impacting participants nationwide:http://erc.web.irs.gov/docs/2002/awss/cs/ptsp/erc-state.htm.

  2. The Department of Transportation (DOT) performs the following tasks for IRS under an interagency agreement:

    1. Process applications and maintain a record of active participants.

    2. Disburse transit subsidies.

    3. Maintain records of subsidy disbursements.

    4. Provide administrative reports of disbursement activity.

    5. Coordinate with local transit authorities.

  3. IRS Fare Media Distributors (FMD) will ensure the successful disbursement of the transit pass within their geographic area. This includes coordinating the space and logistics for the distribution of the transit pass, and communicating with participants about the scheduled distribution dates, times, and locations. Distribution schedules and contact names may be found at the PTSP Distribution website: http://erc.web.irs.gov/docs/2002/awss/cs/ptsp/erc-state.htm.

  4. Participating employees are responsible for:

    1. Certifying their eligibility for transit benefits.

    2. Ensuring the benefit requested and received is the proper amount needed.

    3. Ensuring proper use of the benefit.

    4. Returning pro-rated portions of subsidy received in advance, upon separation from the Service.

    5. Completing Form 11664-C, PTSP Change in Information, when withdrawing from the program. Withdrawal from the program is mandatory.

  5. The participant's manager is responsible for approving and signing the employee's initial application and any subsequent re-certifications. By signing, managers are acknowledging their awareness that the employee uses public transportation to commute to and from work.

  6. The IRS Employee Resource Center (ERC) serves as the first contact point for employees' questions or concerns with PTSP. The ERC provides program information on their website, along with a ticketing feature for requesting assistance. The ERC web address is http://erc.web.irs.gov/.

1.32.15.3  (03-01-2006)
Policy and Eligibility

  1. To be eligible to receive an IRS PTSP transit subsidy benefit, employees must use public transportation to commute from their residence to their permanent POD or non-temporary work location, and return to residence.

  2. The transit subsidy benefit is equal to the participants' actual monthly commuting cost - up to the maximum of $105 per month - regardless of the number of days that public transportation is used.

1.32.15.3.1  (03-01-2006)
Employees Covered

  1. The program is open to all eligible IRS and Chief Counsel employees.

  2. Part-time users of public transportation may apply, as the transit benefit is determined by actual commuting costs and not the number of days used.

  3. Eligible participants are not entitled to benefits during the time they are:

    1. On detail to a temporary post of duty.

    2. On official business travel.

    3. On leave.

    4. On jury duty.

    5. Using a government-owned vehicle to commute to work.

    6. Using an IRS-subsidized parking space.

    7. Using unauthorized transportation (carpool).

  4. Contractors, contract employees, volunteers, and others that are not on the IRS payroll are specifically excluded from participating in this program.

1.32.15.3.2  (03-01-2006)
Transportation Authorized

  1. Acceptable modes of public transportation are bus, ferry, subway, train and vanpools (public, commercial or private vanpools).

  2. Private vanpools are acceptable only if they meet the following criteria:

    1. Any highway vehicle with a seating capacity of at least six adults (not including the driver).

    2. At least 80% of the mileage is for transporting employees between their residences and their permanent POD or non-temporary work location.

    3. The number of employees transported is at least 50% of the adult seating capacity of such vehicle (not including the driver). If the van seating capacity is six passengers, the van must operate at 50% capacity on all commutes with three passengers on board at all times, plus the driver.

1.32.15.3.3  (03-01-2006)
Parking Excluded

  1. Parking expenses, whether at a commuter lot or at or near the workplace, are not recoverable and not considered a transit cost under PTSP.

  2. If a participant has an IRS assigned parking permit, that is non-subsidized, the local Facilities Management office may revoke the permit. The decision to revoke depends on the available parking spaces at the participant's workplace.

1.32.15.4  (03-01-2006)
Subsidy Payment Types

  1. There are two types of subsidy payments for PTSP participants:

    1. Transit pass/voucher.

    2. Cash reimbursement.

  2. The type of subsidy distributed to the participant depends on:

    1. The type of transportation used (public or privately-owned).

    2. The local transit authorities acceptance of the transit pass.

    3. The availability of accepted transit passes.

  3. Generally, transit passes are provided to public transportation users and cash reimbursements are provided to vanpool riders.

    1. The transit pass distribution takes place BEFORE incurring commuting costs, and

    2. Cash reimbursement takes place AFTER incurring commuting costs.

      Note:

      Most employees in the IRS program commute to work on public transportation and receive transit passes as subsidy payment.

1.32.15.4.1  (03-01-2006)
Transit Pass/Voucher

  1. Transit passes are first secured by DOT, from the local transit authorities, and later distributed to public transportation users. Generally, the subsidy is distributed on a quarterly basis.

  2. The type of transit pass that DOT distributes will vary, depending on the local transit authority. Some local transit authorities issue:

    1. Denomination certificates, which are used to purchase fare of equal value.

    2. Monthly passes, which are time sensitive.

    3. Annual passes, which are time sensitive.

  3. Transit passes cannot be:

    1. Exchanged for cash.

    2. Transferred from one employee to another.

    3. Given, loaned, or sold to others.

1.32.15.4.2  (03-01-2006)
Cash Reimbursement

  1. Cash reimbursements of the actual quarterly commuting costs - up to the maximum of $105 per month - are generally paid to participants:

    1. In private vanpools, or

    2. In areas where the local transit authority does not accept the transit pass, or

    3. In areas where the locally accepted transit pass is unavailable to DOT, or

    4. In areas where a reduced price annual pass is unavailable to DOT.

1.32.15.5  (03-01-2006)
Benefit Calculation

  1. The IRS PTSP transit subsidy benefit is equal to the participants' actual monthly commuting cost - up to the maximum of $105 per month - regardless of the number of days that public transportation is used.

  2. Parking expenses are not considered a commuting cost under PTSP.

1.32.15.5.1  (03-01-2006)
Commuting Cost Estimate and Benefit Estimate

  1. Those receiving an advance of the transit pass must estimate their commuting costs for the upcoming quarter to ensure the appropriate benefit amount is received at the quarterly distribution.

    Example:

    75 Usual fare cost per month
    105 Maximum benefit allowed per month
    225 Benefit estimate to be received at quarterly distribution ($75 X 3 months)

1.32.15.5.2  (03-01-2006)
Adjusting the Benefit Estimate

  1. Participants are not entitled to benefits for the days they do not use public transportation to commute to and from the workplace, and benefits should be adjusted accordingly.

    1. Example:

    75 Usual fare cost per month
    225 Quarterly commuting cost ($75 X 3)
    -30 Fare adjustment for planned days in travel status and on annual leave
    195 Adjusted quarterly commuting cost

1.32.15.5.3  (03-01-2006)
Estimates and Actual Costs

  1. Ideally, estimates should be as accurate as possible to avoid any overpayment or underpayment of benefit.

    1. Example:

      250 Benefit received this quarter
      250 Actual commuting cost this quarter
      0 Balance at end of quarter

1.32.15.5.4  (03-01-2006)
Overestimated Benefit

  1. If the benefit was overestimated, the balance must be returned.

    1. Example:

      360 Commuting cost estimate this quarter ($120 X 3)
      315 Maximum benefit ($105 per month X 3)
      315 Benefit received this quarter
      250 Actual commuting cost this quarter
      65 Balance due

  2. Returning the balance due is accomplished in one of three ways:

    1. Return unused transit passes with Form 11664-G, PTSP Participant Return of Fare Media, or

    2. Request less transit passes at the next distribution, or

    3. Send a personal check or money order payable to U.S. Treasury. Send to: Internal Revenue Service, Beckley Finance Center, P.O. Box 9002, Beckley, WV 25802–9002.

    4. Use a Document Transmittal Form 3210 and annotate "to reimburse the IRS account for transit subsidy."

1.32.15.5.5  (03-01-2006)
Underestimated Benefit

  1. If the benefit was underestimated, submit Form 11664-H, PTSP Request for Supplemental Mailing of Fare Media, to receive a supplemental amount.

    1. Example:

      210 Commuting cost estimate this quarter ($70 X 3)
      315 Maximum benefit ($105 per month X 3)
      210 Benefit received this quarter
      260 Actual commuting cost this quarter
      50 Out-of-pocket expense
      50 Submit Form 11664-H for supplemental amount
      50 Received
      0 Balance

  2. Any long-term change in the commuting cost estimate needs to be reported to DOT on Form 11664-C, PTSP Change of Information. DOT uses the sum of all estimates to determine the amount of transit passes to purchase for the upcoming distribution.

1.32.15.5.6  (03-01-2006)
Cash Reimbursement Calculation

  1. Those receiving transit subsidy benefits in arrears, with a cash reimbursement, are entitled to their actual commuting expenses up to the maximum amount.

    1. Example:

      325 Actual commuting cost this quarter
      315 Maximum benefit ($105 per month X 3)
      315 Submitted for reimbursement
      315 Received
      0 Balance

1.32.15.5.7  (03-01-2006)
Vanpool Owner Out-of-Pocket Expense

  1. If the PTSP participant is the owner/driver of a vanpool, they are reimbursed only for their out-of-pocket expense in operating the van - up to the maximum of $105 per month - regardless of the number of days that the van is used. Out-of- pocket expenses are those that exceed the total fare amounts received from the riders.

    1. Example:

      1,950 Actual operating cost this quarter
      1,890 Fares received this quarter from riders (6 X $315)
      60 Out-of-pocket expenses
      60 Submitted for reimbursement
      60 Received
      0 Balance

1.32.15.6  (03-01-2006)
Application Process

  1. Applications for participating in the program can be submitted at any time. There is a continuous open season.

  2. SEID numbers are required on all PTSP applications and forms.

  3. The applicant's immediate manager must sign and date the application form. This date becomes the benefit effective date, unless it is later determined the application is incomplete. Retroactive subsidies, prior to the effective date, are not authorized.

1.32.15.6.1  (03-01-2006)
Users of Public Transportation

  1. Public transportation users must apply using Form 11664-A, PTSP Application. The form must be signed and dated by the applicant's immediate manager. The new participant may be entitled to a supplemental distribution of the transit pass, if the effective date is prior to the next scheduled distribution. If so, a Form 11664-H, PTSP Request for Supplemental Mailing of Fare Media, should be sent with the application.

  2. Send the forms to DOT for processing, as indicated on the form.

  3. DOT enters the employee into the database as an approved PTSP program participant, eligible for transit subsidies.

1.32.15.6.2  (03-01-2006)
Users of Private Vanpools

  1. Private vanpool riders and owner/drivers must apply using Form 11664-B, PTSP Private Vanpool Application. The form must be signed and dated by the applicant's immediate manager.

  2. Send applications to the IRS PTSP function, as indicated on the form.

  3. The IRS PTSP function will qualify the application using the authorized vanpool criteria.

  4. If the vanpool qualifies, that application is sent to DOT for processing.

  5. If the vanpool does not qualify, the applicant is notified of the determination.

1.32.15.7  (03-01-2006)
Subsidy Distribution Process

  1. The applicant becomes a program participant once the application is processed by DOT.

  2. The effective date for benefits is the date the manager signed the application.

1.32.15.7.1  (03-01-2006)
Transit Pass/Voucher

  1. The transit pass is distributed in ADVANCE of the quarter in which they are to be used.

    1. Monthly distributions are made for those locations with time sensitive monthly passes.

    2. Annual distributions are made for those locations with annual passes.

  2. If there are LESS than 200 participants in the area, DOT mails the transit pass to the Fare Media Distributor (FMD) for disbursement. The FMD then notifies the participants that the transit pass is available for pickup.

  3. If there are MORE than 200 participants in the area, DOT agents are sent to the distribution site and they disburse the transit pass directly to the participants. Prior to that, the FMD will notify participants of the date, time and location of pickup.

  4. At the pickup, participants must:

    1. Present their IRS badge for identification.

    2. Sign the Form 11664-F, PTSP Signature Sheet for Up-front Monthly/Quarterly Distribution, and annotate their work phone number, SEID and manager's name.

    3. Verify the subsidy amount collected for the distribution period.

  5. Participants must safeguard the transit pass. It becomes their property and responsibility immediately upon receipt.

    1. If lost or stolen - no refunds or replacements are authorized .

    2. If damaged or expired - contact the local transit authority as they may accept it. If not, submit to the IRS PTSP staff on Form 11664-G, PTSP Participant Return of Fare Media, along with a short explanation. Replacement is considered on a case-by-case basis.

    3. To avoid damage, keep magnets away from the magnetic strips on the transit pass, and do not staple, fold, or mutilate.

    4. To avoid expiration, always use the oldest date first.

  6. If a participant is unable to attend a distribution to pick up their transit pass, they should:

    1. Designate a coworker to pick up in their absence (Form 11664-E, PTSP Authorization for Third Party Pick-up of Transit Subsidy), or

    2. Request a supplemental distribution of the transit pass (Form 11664-H, PTSP Request for Supplemental Mailing of Fare Media).

  7. Participants can only pick up their transit pass at their assigned POD.

  8. Supplies of transit pass are not maintained by the FMD or the PTSP staff.

1.32.15.7.2  (03-01-2006)
Cash Reimbursement

  1. Cash reimbursements are distributed in ARREARS, after the commuting expense is incurred.

  2. To receive a cash reimbursement payment, participants must submit their request on Form 11664-D, PTSP Cash Reimbursement Certification, within 30 days after the end of the quarter.

  3. After reviewing the request, a convenience check is sent to the participant.

  4. Generally, participants receive their check two weeks after the request is received.

1.32.15.8  (03-01-2006)
Separating Employees

  1. After processing of personnel separating actions, the separating employee is removed from the program and loses eligibility for the IRS PTSP.

  2. The separating employee will return pro-rated portions of subsidy received in advance to the IRS PTSP staff using Form 11664-G.

  3. Instructions for computing pro-rata amounts are found in sub-section 5.4, Overestimated Benefit.

1.32.15.9  (03-01-2006)
Descriptions of PTSP Forms

  1. PTSP Application - Form 11664-A

    1. Submitted by new applicants to certify their eligibility and request transit pass disbursement. Also used for re-applying after a 6-month absence from the program.

    2. Completed applications are sent to DOT for processing.

    3. After processing, the new participant will receive a pro-rata amount of fare media for the current quarter. If the transit pass is unavailable, the participant will receive instructions to submit a Form 11664-D, PTSP Cash Reimbursement Certification, for cash reimbursement.

  2. PTSP Private Vanpool Application - Form 11664-B

    1. Submitted by new applicants to certify their eligibility as a vanpool occupant.

    2. Completed applications are sent to IRS PTSP staff for processing.

  3. PTSP Cash Reimbursement Certification - Form 11664-D

    1. Submitted by participants at the end of each quarter, in those instances when the transit pass is not accepted or available.

    2. Completed certification forms are sent to the IRS PTSP staff for processing.

    3. The participants will then receive a reimbursement check.

  4. PTSP Change of Information - Form 11664-C

    1. Submitted by participants to change their commuting cost estimate or personal information, or to withdraw from the program.

    2. Sent to DOT for processing.

  5. PTSP Authorization for Third Party Pick-up - Form 11664-E

    1. Form is prepared by participant and given to a designated co-worker, authorizing them to pick-up the transit pass on the participant's behalf.

  6. PTSP Signature Sheet for Up-front Monthly/Quarterly Distribution - Form 11664-F

    1. DOT or FMD will present this form to participants at the transit pass distribution.

    2. Participant signs the form indicating receipt and acceptance of the transit pass.

  7. PTSP Participant Return of the Fare Media - Form 11664-G

    1. Submitted when participant separates from the Service, or

    2. When withdrawing from the program, or

    3. When the transit pass is damaged or expired, or

    4. When participant overestimated and received more transit pass than entitled to

    5. Send the form and the transit pass to the IRS PTSP staff for processing.

  8. PTSP Request for Supplemental Mailing of Fare Media - Form 11664-H

    1. Submitted when participant missed the distribution and had no designee, or

    2. When participant was omitted from DOT's distribution list, or

    3. When participant underestimated and received less transit pass than entitled to, or

    4. When a new participant's effective date for benefits is prior to the next distribution.

    5. Sent to DOT for processing.

  9. Current Form Revisions

    1. The most current revisions of the forms mentioned in this IRM section can be found on the Commonly Used Forms website at http://publish.no.irs.gov/common.html.


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