The IRS released an advance version of Notice 2021-7 to provide temporary relief for employers using the automobile lease valuation rule to value an employee’s personal use of an employer-provided automobile for purposes of income inclusion, employment tax, and reporting.
The temporary relief is in response to the coronavirus (COVID-19) pandemic.
Notice 2021-7 [PDF 97 KB] provides that if certain requirements are satisfied, employers and employees that are using the automobile lease valuation rule to determine the value of an employee’s personal use of an employer-provided automobile can instead use the vehicle cents-per-mile valuation rule to determine the value of an employee’s personal use of an employer-provided automobile beginning as of March 13, 2020.
Read the article at KPMG
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