R27-3-8. Exemptions from IRS-Imputed Daily Fringe Benefits

(1) Commute and personal use of vehicles are considered a taxable fringe benefit as outlined in 26 CFR 1.61-21. Approved commute use drivers shall be assessed the IRS-imputed daily fringe benefit rate while using a state vehicle for commute or personal use. The division shall notify the Division of Finance of this authorization. The Division of Finance shall then enter the authorized driver's fringe benefit into the payroll system. (2) The State standard for tracking and recording daily fringe benefits is established by the Division of Finance in policy. (3) Tax exemptions for commuting or personal use must be in accordance with 26 CFR 1.61-21 and must be approved by the employing agency. (4) Any agency claiming an IRS exemption must maintain a file justifying the exemption and must be prepared to explain the agency's position in the case of an IRS audit.