ISO: Company Vehicle Information please

[Guest MSMA]

This query is for my own personal information - would appreciate it if one of you could point me in the right direction.

My husband has been issued a company van which can be used for personal use as well as business. As this is indeed a "benefit" of sorts, I am trying to be pro-active in regards to any possible down-side this may present...such as it being reflected for tax purposes.

I did a search on the Misc. Benefits board but did not run across anything other than the 1.61-21 reg (which I will look up next).

Finally, his employer just sent out a notice that they apparently got stung over this issue, and as a result will be deducting $45.00 a month from each technician to satisfy the IRS??

Can anyone surmise what this is all about?

Sorry if this is the wrong board to ask this!

Thanks in advance for your help / direction.

[papogi]

The company car is a fringe benefit. Fringe benefits are to be included as taxable compensation by your employer on your W-2 unless the employee pays fair market value for the benefit. I'm thinking the employer never added the FMV of the personal use portion to each employee's paycheck in the past. One way around this is if the employer begins making the employees pay the employer for the personal use of the vehicles. That's probably where the $45 is going.