In the latest State of the Fleet Industry Spotlight video, Automotive Fleet Editor Mike Antich interviewed Pat O’Connor, the long-time legislative counsel for NAFA Fleet Management Association, to discuss the unintended tax consequences that the COVID-19 pandemic created for company drivers during the shelter-in-place mandates.
Following the declaration that COVID-19 was a pandemic, the U.S. economy was divided into essential and non-essential businesses. Many of the fleet vehicles operated by non-essential businesses were idled and parked during most of the economic shutdown. Company drivers at non-essential companies were encouraged by their management to conduct their business virtually.
As a result, many company vehicles incurred zero business miles and what mileage was accumulated was 100% personal. Depending on the methodology used to calculate personal use taxes, it negatively skewed the amount of taxes owed by drivers to their detriment.
In the latest video, Antich and O'Connor discuss how NAFA is communicating with the IRS, the U.S. Senate Finance Committee and the House Ways and Means Committee to mitigate this unintended tax liability for company drivers. Here is our report.
O'Connor will be giving his U.S. Legislative Update presentation at the 2020 NAFA Institute & Expo (I&E) Virtual Conference on Tuesday, September 15, 3:30 p.m. EST. Additionally, NAFA will host a Canadian Legislative Update on Wednesday, September 16, 1:30 p.m. EST.
See all comments