Tax Type
Employer Income Tax Withholding
Description
Personal use of company automobile
Topic
Withholding of Tax
Date Issued
07-31-1986
August 26, 1986
Re: Ruling Request: Withholding
Dear *****************
This will reply to your request concerning applicability of Virginia income tax withholding to noncash fringe benefits in the form of personal use of company automobiles.
I previously ruled, by letter dated October 15, 1985, that such benefits were subject to Virginia withholding tax, notwithstanding the federal provision that permitted an employer not to withhold income taxes on the value of such benefits.
I have reexamined the merits of the department's position and have determined that, for the purposes of withholding Virginia income tax on the value of personal use of company automobiles, Virginia will follow the procedures established by the Internal Revenue Service. Accordingly, the above-referenced ruling dated October 15, 1985 is hereby rescinded.
A tax bulletin announcing this policy will be forthcoming.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner