Taylor was sent off after a wild lunge on the Everton right-back during the goalless draw at the Aviva Stadium in Dublin on March 24, and was therefore due to serve an automatic one-match suspension.
The red carries an automatic one-match suspension but FIFA's disciplinary committee have increased Taylor's sanction by an extra games meaning the Aston Villa man will miss Wales' next two World Cup qualifiers against Serbia and Austria.
The FA of Wales said in a statement on Wednesday: "Following a meeting of FIFA's disciplinary committee, the FAW can confirm that Neil Taylor has been suspended for two matches.
"Following his sending off against Republic of Ireland on March 24, Taylor is regarded as having breached art. 48 of the FIFA disciplinary code."
Taylor, part of the Wales side which reached the semi-finals of Euro 2016 last summer, will miss the trip to Serbia on June 11 and the home game against Austria on September 2.
Coleman's injury, so bad that television broadcasters chose not to replay footage of the incident, shocked football and left the Everton defender facing a lengthy rehabilitation period.
The 28-year-old had surgery the day after the Dublin draw and has stayed in his native Ireland at the start of his recovery period.
Everton boss Ronald Koeman and captain Phil Jagielka both visited Coleman at his home in County Donegal earlier this month.
Coleman will be sidelined until next season but could be back running by August if his recovery goes to plan.