What IRS rule should members be aware of regarding personal use of department vehicles?

Members of the Oklahoma City Fire Department should be aware that personal use of department vehicles may create an income tax liability. This means that if a department vehicle is used for personal purposes, the value of that personal use could be considered a taxable benefit by the IRS. It is important for members to understand that the IRS has specific guidelines regarding the taxation of fringe benefits, including the personal use of employer-provided vehicles.

When a vehicle is provided primarily for business use but also used personally, the personal use is typically considered a fringe benefit and can have tax implications. Members need to maintain clear records and comply with any IRS reporting requirements to avoid unexpected tax liabilities. This awareness helps ensure that members are following not only department policies but also federal tax regulations while using department resources.