Compliance
What Employers Must Do: Compliance Update on Fringe Benefits and Reporting in 2026
Learn about the new rules for fringe benefits, digital asset reporting, and information statement formats that businesses can’t ignore this year.
By NomadicTax Research Team • 5-8 min read • March 21, 2026
## New compliance rules for fringe benefits under Pub. 15-B
IRS Publication 15-B (2026) introduced several important changes:
- **Qualified parking and commuter benefits** monthly exclusion remains at **$340** in 2026. If you're offering these to employees, ensure your benefits structure reflects this cap. ([irs.gov](https://www.irs.gov/publications/p15b/?utm_source=openai))
- **Bicycle commuting reimbursements** have been eliminated beginning **after 2025**. Don’t continue tax-free reimbursements for this benefit—it’s no longer excluded. ([irs.gov](https://www.irs.gov/publications/p15b/?utm_source=openai))
- **Employer meals deductions** for food & beverages via an eating facility that meets the “convenience of the employer” test are no longer deductible after 2025. The 50% deduction has been eliminated. ([irs.gov](https://www.irs.gov/publications/p15b/?utm_source=openai))
- **Dependent Care Flexible Spending Accounts (FSAs)** limits have increased—$7,500 for married filing jointly, $3,750 if married separately—so review those contributions. ([irs.gov](https://www.irs.gov/publications/p15b/?utm_source=openai))
## Digital asset broker reporting and 1099-DA proposal
A major upcoming compliance requirement concerns digital assets:
- Proposed regulations (IR-2026-29, **March 5, 2026**) allow digital asset brokers to furnish **Form 1099-DA**, “Digital Asset Proceeds from Broker Transactions,” **electronically**, streamlining reporting burdens. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai))
- Under proposals, statements required on or after **January 1, 2027** may be furnished electronically with enhanced notice and access but without always offering paper option. Brokers must follow rules regarding customer consent and access. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai))
## What businesses need to do now (action steps)
- Review current benefit packages: ensure elimination of now-non-deductible fringe benefits (meals, bicycle commuting).
- For businesses handling digital assets or using platforms that deal with customers buying/selling crypto or NFTs, begin preparing systems for Form 1099-DA electronic delivery (customer notification, record-keeping, obtaining consent).
- Update payroll and HR departments, train staff, adjust policies so that reimbursable expenses and fringe benefits are properly classified under the new regime.
- Stay current on IRS guidance and proposed regulation comment deadlines—especially for entities affected by 1099-DA changes.
## Examples
- **Restaurant chain** that offered commuter transit passes and parking should continue under $340 monthly, but will lose deduction for employee meals provided on-site after year end.
- **Crypto exchange or digital asset platform** onboarding customers now must ensure they collect consent for electronic statement delivery and notify customers that important tax documents will be made available electronically in 2027.
Effective compliance in 2026 means that businesses need to adapt quickly—in both reporting digital assets and the array of fringe benefits—to avoid unexpected liabilities or penalties.