The enactment of the American Taxpayer Relief Act (ATRA) restored parity to the monthly transit limit, raising it from $125 to $240 for the 2012 taxable year. The IRS has issued Notice 2013-8 in response to the previously published IRS guidance retroactively increasing the combined transit pass and commuter highway vehicle (transit) monthly limit from $125 to $240 for the 2012 tax year.
Notice 2013-8 provides detailed guidance to employers who, in 2012, provided transit benefits in excess of the $125 per month that was less than or equal to the new $240 monthly transit limit. Employers who desire to make adjustments for 2012 can find special administrative procedures in the Notice.
Click here to view IRS Notice 2013-8. Please consult your tax adviser and payroll provider to discuss the applicability of adjustments for your business. 
Friday, July 6, 2012, President Obama signed into law the Moving Ahead for Progress in the 21st Century Act (MAP-21). However, the provision to restore parity between the transit and parking benefit that was included in the Senate version of the legislation was dropped from the final bill. The current monthly pretax transit cap remains at $125 and the monthly pretax parking cap remains at $240.
No Additional Commuter Limit Increase Planned for 2010
The IRS recently confirmed that the 2009 transit and parking limits will remain the same for 2010. In the spring of 2009, the IRS increased the 2009 limit for monthly pre-tax transit contributions from $120 to $230 a month, which is the same amount allowed for pre-tax parking contributions. The 2010 limits will remain at $230 for both parking and transit.