IRS digging into personal use of state cars

Source: Sacramento Bee

The IRS wants to know how nearly 9,000 state workers have used their government-issued vehicles.

According to a Jan. 27 memo from the state Department of General Services to agency directors and obtained by The Bee, federal auditors will focus on 2008 "tax reporting associated with personal use of state-owned or -leased vehicles."

... Personal use of a business vehicle is taxable income, said Perry Ghilarducci, a Sacramento CPA who prepares business and personal tax returns. If federal auditors determine a government car has been used for personal trips, the employee will owe taxes on that use – and so will the state as the employer.

"It could be a huge (back tax) number for the state," Ghilarducci said, depending on what auditors find.

Read more: http://www.sacbee.com/topstories/story/2522916.html

That didn't take long!