The IRS announced temporary relief for employers and employees using the automobile lease valuation rule. In response to the COVID-19 pandemic, the IRS relief involves determining the value of an employee’s personal use of an employer-provided vehicle. That value is used to calculate an amount to include in the employee’s gross income. Under the auto lease valuation rule, an employer determines the fair market value when a vehicle was first made available to an employee and applies a corresponding “Annual Lease Value.” Under the relief, an employer may instead use the vehicle cents-per-mile valuation rule beginning on March 13, 2020, as long as certain requirements are met. (Notice 2021-7) Call or visit our website for more information! www.mjscpa.com/
