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Client Alert: Reporting Personal Use of Company Car Rules 2018

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 $110,000, or employees earning more than who drive a company car that cost more than $15,600 if first put in use in 2018 ($15,900 in 2016 and 2017). The memorandum does not address the company car reporting rules for employers with 20 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 us for those reporting rules.

If you have any questions, please contact:
Charles J. Frago, CPA, Principal, at 413-726-6862 or, or 
Michael J. Rowe, CPA, Principal, at 617-428-5437 or