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Reporting Personal Use of Company Cars Client Alert

Enclosed, please find a memorandum regarding the IRS company car reporting rules for 2019. This record is suitable for your payroll department to copy onto corporate letterhead, sign, and distribute to applicable personnel.

The memorandum is applicable to directors, 1% or more owners, officers earning more than $110,000, or employees earning more than $225,000 who drive a company car that costs more than $50,400 and was first put to use in 2019 ($50,000 in 2018 and $15,900 in 2017). The document does not address the company car reporting rules for employers with 20 or more such cars, or employees/officers with less compensation, a lower-cost company car, or who are reimbursed by the company for using their own car.