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Client Alert: Reporting Personal Use of Company Car Rules 2015

Please find this memorandum suitable for your payroll department to copy onto corporate letterhead, sign and distribute to applicable personnel, regarding the IRS company car reporting rules for the current year. 

The memorandum is applicable to directors, one percent or more owners, officers with compensation in excess of $105,000, or employees earning more than $215,000 who drive a company car that costs more than $16,000 if first put in use in 2015 ($14,800 in 2004 and 2005, $15,000 in 2006, $15,100 in 2007, $15,000 in 2008 and 2009, $15,300 in 2010 and 2011, $15,900 in 2012, and $16,000 in 2013 and 2014).

The memorandum does not address the company car reporting rules for employers with 20 or more such cars, employees or officers with less compensation or a lower cost company car, or who are reimbursed by the company for using their own car. If that is the case, please call Jana Bacon at 413-726-6854 for those reporting rules.

If you have any questions, please contact:
Jana B. Bacon, CPA, Member of the Firm, at 413-726-6854 or jbacon@wolfandco.com, or 
Charles J. Frago, CPA, Principal, at 413-726-6862 or cfrago@wolfandco.com, or 
Michael J. Rowe, CPA, Principal, at 617-428-5437 or mrowe@wolfandco.com