Department of the Interior
Bureau of Land Management
Grand Junction, CO 81506
February 10, 2021
In Reply Refer To:
1525 (HQ-700, OC-600) P
EMS TRANSMISSION 02/12/2021
Instruction Memorandum No. 2021-015
To: All Headquarter, Center, and State Office Officials
Attn: State Fleet Managers
From: Assistant Director, Business Management and Administration
Subject: Home-to-Work Fleet Use
Program Area: Fleet Management.
Purpose: This Instruction Memorandum (IM) communicates and informs that in certain circumstances, the use of Government owned, leased, or otherwise managed vehicles for home-to-work commute is considered a taxable fringe benefit and must be reported as taxable income to the employee.
Administrative or Mission Related: Administrative.
Policy/Action: Effective immediately, State Fleet Managers are required to implement a process that identifies, documents, maintains, and reports the taxable home-to-work use of motor vehicles by employees. State Fleet Managers must provide monthly reports of this information to the Bureau Fleet Manager (negative reports are required), who will consolidate and submit a quarterly report to the Interior Business Center in accordance with the DOI Payroll Operations Division Client Interface Guide, Chapter 10. State reporting requirements are outlined in the Department of the Interior (DOI) Motor Vehicle Management Handbook, Chapter 9, Paragraph 11. Reporting Vehicle Usage. This quarterly report will trigger recording of the taxable benefit and tax withholding from the employee’s pay.
For the purpose of this policy, non-personal use vehicles (Bureau law enforcement vehicles) are excluded from this requirement as authorized by the Tax Reform Act of 1984. Further guidance for authorized non-personal use vehicles is provided in the Office of Law Enforcement and Security (OLES) General Order 17 – VEHICLES, N. Vehicle Domicile.
In accordance with the DOI Motor Vehicle Management Handbook, Chapter 9, Paragraph 9. Bureau/Office Responsibilities, the Bureau Fleet Manager is designated as the Bureau Home-to-Work Program Coordinator and as such is responsible for:
A. Coordinating and disseminating information concerning home-to-work authority;
B. Assisting in completing and processing determination requests;
C. Collecting the monthly Home-To-Work Transportation Log from employees when usage is made;
D. Monitoring usage and maintaining file copies; and
E. Meeting other program requirements, including reports to Congress.
Timeframe: Effective Immediately.
Budget Impact: None.
Background: The Department of the Interior (DOI) Office of Inspector General (OIG) Evaluation Report 2017-ER-014, cited instances where employees taxable home-to-work use of government vehicles was not reported as taxable income to the Internal Revenue Service (IRS). The DOI and OIG recommend that the BLM implement policies and procedures to ensure that employees taxable use of government vehicles is reported to the IRS.
The IRS Publication 15-B (https://www.irs.gov/publications/p15b) states that when an employee is provided with the use of a vehicle for home-to-work commute by an employer, that use is considered a fringe benefit and it is taxable. In the document, the Working Condition Benefit exclusion provides the non-personal use vehicle exemption for law enforcement employees. All other employees should review this document and consult a tax professional to fully understand the tax implications for using this fringe benefit.
The DOI Motor Vehicle Management Policy, 412 DM-1, restricts motor vehicle use to official use. It allows for limited authorization of identified vehicles and/or staff to use government owned, leased, or otherwise managed vehicles for regular home-to-work commuting travel. Any use of a government vehicle between an employee’s place of employment and residence, other than official temporary duty travel assignments requires written approval, in advance, by the Secretary. This authority may not be delegated (see Chapter 9, Home-To-Work Transportation).
Manual/ Handbook Sections Affected: 1525 Fleet Management Manual.
Coordination: This IM was coordinated by the Engineering and Asset Management Branch (HQ-754) and Division of Business Services (OC-600).
Contact: Jason Moss, Bureau Senior Property Manager, at (303) 236-5413; Gary Klein, Chief, Property Operations, at (303) 236-3529; Perry Coats, Bureau Fleet Manager, at (303) 236-0020.
Signed by: Authenticated by:
Barbara L. Eggers Robert M. Williams
Assistant Director Division of Regulatory Affairs,(HQ-630)
Business Management and Administration
- DOI Motor Vehicle Management Policy, 412 DM-1 (8 pp)
- DOI Fleet Management Handbook (45 pp)
- DOI Payroll Operations Division Client Interface Guide, Chapter 10 (8 pp)
- OLES General Order 17 – VEHICLES, N. Vehicle Domicile (2 pp)