Publication 15-B Employer'S Tax Guide To Fringe Benefits - 2003 Page 23
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24your employee cannot use the special accounting rule
may show the total value of the fringe benefits provided in
unless you do.
the calendar year or other period in box 14 of Form W-2.
You do not have to notify the IRS if you use the special
However, if you provided your employee with the use of a
accounting rule. You may also, for appropriate reasons,
highway motor vehicle and included 100% of its annual
change the period for which you use the rule without
lease value in the employee’s income, you must also
notifying the IRS. But you must report the income and
report it separately in box 14 or provide it in a separate
deposit the withheld taxes as required for the changed
statement to the employee so that the employee can com-
period.
pute the value of any business use of the vehicle.
If you use the special accounting rule, you must notify
Special rules for highway motor vehicles. If an em-
the affected employees of the period in which you used it.
ployee uses the employer’s vehicle for personal purposes,
You must give this notice at or near the date that you give
the value of that use must be determined by the employer
the Form W-2 but not earlier than with the employee’s last
and included in the employee’s wages. The value of the
personal use must be based on fair market value or deter-
paycheck of the calendar year.
mined by using one of three special valuation rules:
•
The automobile lease valuation rule.
How To Get Forms and
•
The vehicle cents-per-mile rule.
Publications
•
The commuting valuation rule (for commuting use
only).
Personal computer. You can access the IRS Web Site
Election not to withhold income tax. You can choose
24 hours a day, 7 days a week at to:
not to withhold income tax on the value of an employee’s
•
personal use of a highway motor vehicle that you provided.
Download forms, instructions, and publications.
You do not have to make this choice for all employees. You
•
See answers to frequently asked tax questions.
can withhold income tax from the wages of some employ-
•
ees but not others. You must, however, withhold the appli-
Search publications on-line by topic or keyword.
cable social security and Medicare taxes on such benefits.
•
Send us comments or request help by e-mail.
You can choose not to withhold income tax on an
•
employee’s personal use of a highway motor vehicle by:
Sign up to receive local and national tax news by
•
e-mail.
Notifying the employee as described below that you
choose not to withhold and
You can also reach us using File Transfer Protocol at
•
Including the value of the benefits in boxes 1, 3, 5,
ftp.irs.gov.
and 14 on a timely furnished Form W-2. For use of a
separate statement in lieu of using box 14, see the
CD-ROM. Order Pub. 1796, Federal Tax Products on
Instructions for Forms W-2 and W-3.
CD-ROM, and get:
The notice must be in writing and must be provided to
•
Current year forms, instructions, and publications.
the employee by January 31 of the election year or within
•
Prior year forms, instructions, and publications.
30 days after a vehicle is first provided to the employee,
whichever is later. This notice must be provided in a man-
•
Frequently requested tax forms that may be filled in
ner reasonably expected to come to the attention of the
electronically, printed out for submission, and saved
affected employee. For example, the notice may be mailed
for recordkeeping.
to the employee, included with a paycheck, or posted
•
The Internal Revenue Bulletin.
where the employee could reasonably be expected to see
it. You can also change your election not to withhold at any
Buy the CD-ROM on the Internet at /
time by notifying the employee in the same manner.
cdorders from the National Technical Information Service
Amount to report on Forms 941 and W-2. The actual
(NTIS) for $22 (no handling fee) or call 1-877-CDFORMS
value of fringe benefits provided during a calendar year (or
(1-877-233-6767) toll free to buy the CD-ROM for $22
other period as explained under Special accounting rule
(plus a $5 handling fee).
on page 22) must be determined by January 31 of the
following year. You must report the actual value on Forms
By phone and in person. You can order forms and publi-
941 and W-2. If you choose, you can use a separate Form
cations 24 hours a day, 7 days a week, by calling
W-2 for fringe benefits and any other benefit information.
1-800-TAX-FORM (1-800-829-3676). You can also get
Include the value of the fringe benefit in box 1 of Form
most forms and publications at your local IRS office.
W-2. Also include it in boxes 3 and 5, if applicable. You
Page 23
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