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Client Alert: Reporting Personal Use of Company Car Rules 2016

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 cost more than $15,900 if first put in use in 2016 ($15,300 in 2011 and $15,900 in 2012 and $16,000 in 2013, 2014 and 2015).

The memorandum does not address the company car reporting rules for employers with twenty or more such cars or 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