Resolution of the Unintended Personal-Use Charge Tax Consequence
The latest State of the Fleet Industry Spotlight video addresses the successful resolution of an unintended tax consequence for the employee use of company provided vehicles that occurred during shelter-in-place mandates in the pandemic.
Automotive Fleet Editor Mike Antich interviewed Pat O’Connor, the long-time legislative counsel for NAFA Fleet Management Association, to discuss a new notice issued by the Internal Revenue Service that provides relief for company drivers determining the value of company-provided personal use vehicles through the annual lease value (ALV).
The initiative that led to this relief from the IRS was spearheaded by Bill Schankel, CAE, CEO of NAFA, and O’Connor. NAFA earlier in 2020 drafted letters to the IRS, the U.S. Senate Finance Committee and the House Ways and Means Committee to seek mitigation of this unintended tax liability for company drivers.
Originally posted on Automotive Fleet