Government Fleet Top News

Montgomery County Faces Possibility of Take-Home Cuts

May 5, 2011

ROCKVILLE, MD - Montgomery County's "lax oversight and incomplete reporting" of take-home cars has officials worried about potential financial consequences from the Internal Revenue Service and questioning the need for these vehicles, according to The Washington Post.

Some employees have essentially treated government cars as a fringe benefit but might not have reported that extra income on their tax returns, county officials and tax experts said, reported the Post.

In theory, employees who have used government cars for private purposes or failed to properly reimburse the county for the cost of their commutes should send the IRS amended returns and a check to cover unpaid taxes, tax experts told the newspaper.

Financial liability is at stake, one analyst pointed out at a public meeting between members of the County Council and officials responsible for overseeing the take-home fleet.

This month, take-home vehicles were to be eliminated from certain employees this month who had not justified the need for vehicles. However, the cuts have been postponed until summer to allow careful review of the written justifications submitted and more time to figure out which cars are being used properly, the Post reported.

 

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