Proposed Rule2024-28040
Substantiation Requirements and Qualified Nonpersonal Use Vehicles
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 3, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document sets forth proposed regulations relating to the definition of qualified nonpersonal use vehicles. Qualified nonpersonal use vehicles are excepted from the substantiation requirements that apply to certain listed property. These proposed regulations add unmarked vehicles used by firefighters or members of a rescue squad or ambulance crew as a new type of qualified nonpersonal use vehicle. These regulations affect governmental units that provide firefighter or rescue squad or ambulance crew member employees with unmarked qualified nonpersonal use vehicles and the employees who use those vehicles.
Full Text
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<title>Federal Register, Volume 89 Issue 232 (Tuesday, December 3, 2024)</title>
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[Federal Register Volume 89, Number 232 (Tuesday, December 3, 2024)]
[Proposed Rules]
[Pages 95727-95731]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28040]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-106595-22]
RIN 1545-BQ83
Substantiation Requirements and Qualified Nonpersonal Use
Vehicles
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document sets forth proposed regulations relating to the
definition of qualified nonpersonal use vehicles. Qualified nonpersonal
use vehicles are excepted from the substantiation requirements that
apply to certain listed property. These proposed regulations add
unmarked vehicles used by firefighters or members of a rescue squad or
ambulance crew as a new type of qualified nonpersonal use vehicle.
These regulations affect governmental units that provide firefighter or
rescue squad or ambulance crew member employees with unmarked qualified
nonpersonal use vehicles and the employees who use those vehicles.
DATES: Written or electronic comments and requests for a public hearing
must be received by March 3, 2025.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically via the Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a> (indicate IRS and REG-106595-22) by following the
online instructions for submitting comments. Requests for a public
hearing must be submitted as prescribed in the ``Comments and Requests
for a Public Hearing'' section. Once submitted to the Federal
Rulemaking Portal, comments cannot be edited or withdrawn. The
Department of the Treasury (Treasury Department) and the IRS will
publish for public availability any comment submitted electronically or
on paper, to the IRS's public docket. Send paper submissions to
CC:PA:01:PR (REG-106595-22), Room 5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Stephanie Caden at (202) 317-4750; concerning submissions of comments
or requests for a public hearing, the Publications and Regulations
section by email at <a href="/cdn-cgi/l/email-protection#49393c2b25202a212c283b20272e3a09203b3a672e263f"><span class="__cf_email__" data-cfemail="324247505e5b515a5753405b5c5541725b40411c555d44">[email protected]</span></a> (preferred) or (202) 317-
6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Authority
This notice of proposed rulemaking contains proposed regulations
issued under the authority granted to the Secretary of the Treasury or
her delegate (Secretary) by sections 274(p) and 132(o) of the Internal
Revenue Code (Code) that would amend the Income Tax Regulations (26 CFR
part 1) under sections 274(i) and 132(d) related to qualified
nonpersonal use vehicles. Section 274(p) provides the Secretary with an
express grant of regulatory authority with respect to section 274 as
the Secretary may deem necessary to carry out the purposes of that
section. Section 132(o) provides the Secretary with an express grant of
regulatory authority with respect to section 132 to prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of that section. In addition, section 7805(a) authorizes the
Secretary to prescribe all needful rules and regulations for the
enforcement of the Code.
Background
In general, section 274 limits or disallows deductions for certain
expenditures that otherwise would be allowable under chapter 1 of the
Code, primarily under section 162(a), which allows a deduction for
ordinary and necessary expenses paid or incurred during the taxable
year in carrying on any trade or business.
Section 274(d), as relevant to these proposed regulations, provides
that a taxpayer is not allowed a deduction or credit for certain
expenses unless the expenses are substantiated by adequate records or
by sufficient evidence corroborating the taxpayer's own statement as to
the amount, time and place, business purposes of the expenditure, and
the business relationship to the taxpayer of the person receiving the
benefit. These substantiation requirements apply to expenses incurred
in the use of any listed property, as defined in section 280F(d)(4),
which includes any passenger automobile and any other property used as
a means of transportation.
In 1985, Congress modified section 274(d) and added section 274(i),
creating an exception from the substantiation requirements for
qualified nonpersonal use vehicles. Public Law 99-44 2, 99 Stat. 77
(1985). Section 274(i) provides that the term ``qualified nonpersonal
use vehicle'' means any vehicle, which by reason of its nature, is not
likely to be used more than a de minimis amount for personal purposes.
Both the business and personal use of an employer-provided vehicle
that is a qualified nonpersonal use vehicle under section 274(i)
qualifies under section 132(d) as a working condition fringe benefit
that is excluded from the employee's income. Thus, if an employer
provides an employee with a qualified nonpersonal use vehicle, the
employee does not need to keep records of how the vehicle is used, and
the total use of the vehicle is excluded from the employee's income as
a working condition fringe benefit under section 132(d). See Sec. Sec.
1.132-5(h) and 1.274-5(k).
The legislative history to section 274(i) includes examples of
qualified nonpersonal use vehicles such as school buses, qualified
specialized utility repair trucks, qualified moving vans, clearly
marked police and fire vehicles, and unmarked law enforcement vehicles.
H.R. Rep. No. 99-67, at 16 (1985) (Conf. Rep.). The legislative history
indicates that Congress intended the IRS and the Treasury Department to
expand the list to include other vehicles that, by reason of their
nature, are highly unlikely to be used more than a very minimal amount
for personal purposes. H.R. Rep. No. 99-34, at 11 (1985).
Temporary Regulations Sec. 1.274-5T(k) and (l) were issued in
1985, identifying categories of qualified nonpersonal use vehicles and
providing definitions (by cross reference) of terms such as
``automobile,'' ``vehicle,'' and ``personal use.'' TD 8061, 50 FR
46006, 46033, and 46036. Police and fire vehicles that are clearly
marked and law enforcement vehicles that are unmarked were included as
categories of qualified nonpersonal use vehicles. However, clearly
marked vehicles provided to Federal, State, and local government
workers who respond to emergency situations as public safety officers
but
[[Page 95728]]
who are not employed by either a fire department or police department
were not included as qualified nonpersonal use vehicles.
In 2008, proposed regulations were issued to incorporate the text
of Sec. 1.274-5T(k) and add clearly marked public safety officer
vehicles as a new type of qualified nonpersonal use vehicle. 73 FR
32500. An example illustrating the application of the rules to a
clearly marked public safety officer vehicle was included at Sec.
1.274-5(k)(8) as Example 3.
In 2010, final regulations were published adding clearly marked
public safety officer vehicles to the list of qualified nonpersonal use
vehicles. TD 9483, 75 FR 27934 (current regulations). As a result,
emergency responders who are provided a clearly marked vehicle receive
the same tax treatment whether they work for the police department,
fire department, or other governmental unit, or any agency or
instrumentality thereof.
Explanation of Provisions
The Treasury Department and the IRS have become aware that certain
emergency responders not covered by the current regulations are
provided unmarked vehicles by a governmental unit or an agency or
instrumentality thereof (governmental unit). In particular,
stakeholders have commented that fire chiefs or members of rescue
squads or ambulance crews who, when not on a regular shift, need to be
on call at all times to respond to emergencies will often be assigned
unmarked command vehicles to travel safely and quickly to a scene and
perform emergency services. While the authorized use of unmarked
vehicles by law enforcement officers employed on a full-time basis by a
governmental unit that is responsible for the prevention or
investigation of crime involving injury to persons or property
(including apprehension or detention of persons for such crimes)
satisfies the current regulations governing qualified nonpersonal use
vehicles, the use of unmarked vehicles provided to firefighters or
members of a rescue squad or ambulance crew does not satisfy the
current regulations.
Section 274(i) defines a qualified nonpersonal use vehicle as one
which, by reason of its nature, ``is not likely to be used more than a
de minimis amount for personal purposes.'' The current regulations
define qualified nonpersonal use vehicles to include clearly marked
police, fire, or public safety officer vehicles that are owned or
leased by a governmental unit and required to be used for commuting by
a police officer, firefighter, or public safety officer (as defined in
section 402(l)(4)(C)) who, when not on a regular shift, is on call at
all times. Any personal use (other than commuting) of the vehicle
outside the limit of the police officer's arrest powers or the
firefighter's or public safety officer's obligation to respond to an
emergency must be prohibited by the governmental unit. See Sec. 1.274-
5(k)(2)(ii)(A) and (k)(3). The various examples included in Sec.
1.274-5(k)(8) illustrate that a prohibition on personal use (other than
commuting) is intended to exist in situations where both commuting and
only de minimis personal use, such as personal errands, are permitted.
The current regulations also define qualified nonpersonal use
vehicles as including unmarked law enforcement vehicles owned or leased
by Federal, State, county, or local governmental agencies or
departments that officially authorize the business and personal use of
the vehicle by law enforcement officers whom they employ, provided any
personal use is incidental to law enforcement functions. See Sec.
1.274-5(k)(2)(ii)(R) and (k)(6). The regulations define law enforcement
officers as individuals who are employed on a full-time basis by a
governmental unit that is responsible for the prevention or
investigation of crime involving injury to persons or property
(including apprehension or detention of persons for those crimes), who
are authorized by law to carry firearms, execute search warrants, and
to make arrests (other than merely a citizen's arrest), and who
regularly carry firearms (except when it is not possible to do so
because of the requirements of undercover work). See Sec. 1.274-
5(k)(6)(ii). Unmarked law enforcement vehicles allow law enforcement
officers to operate inconspicuously, e.g., so that they can conduct
these duties while performing undercover work.
Historically, firefighters and rescue squad and ambulance crew
members were provided with vehicles that had markings to indicate their
status as emergency response vehicles. More recently, the IRS and
Treasury Department have become aware that some governmental units are
assigning these emergency responders unmarked vehicles due to increased
incidents of harassment of first responders and vandalism of clearly
marked fire and emergency vehicles and equipment.
Generally, fire and emergency response departments retain the title
to the unmarked vehicles and maintain policies that limit the use of
the vehicles for personal, non-work purposes. Because firefighters and
members of a rescue squad or ambulance crew respond to a wide variety
of emergencies at all hours, including fires, medical crises, vehicular
accidents, natural disasters, and terrorist attacks, these vehicles
typically are specially equipped to allow firefighters and members of
rescue squads or ambulance crews who, even when not on a regular shift,
are on call at all times to travel safely and efficiently to the scene
of an emergency and provide emergency services. Onboard equipment may
include lights and sirens, medical emergency equipment, life-saving
devices such as defibrillators, and radios that assist firefighters,
rescue squads, or ambulance crews in communicating with a central
source and other emergency response crews related, for example, to
traffic or hospital capacity. Onboard equipment may also include items
such as personal protective equipment (helmet, coat, boots), emergency
oxygen tanks, reference books, and laptop computers that enable workers
to access important information related to the emergency. Under the
current regulations, emergency responders must substantiate all of the
time they spend using these unmarked vehicles for work related
purposes, and the value of any personal use of these vehicles, even if
minimal, must be included in the employees' taxable income.
Unmarked firefighter and rescue squad or ambulance crew vehicles
are less likely to be utilized in undercover work than unmarked law
enforcement vehicles. However, the use of unmarked vehicles allows
firefighters and other emergency personnel who commute and are required
to be on call at all times, even when not on a regular shift, to travel
inconspicuously, thereby reducing risk of harassment and vandalism.
Also, as described above, unmarked firefighter and rescue squad or
ambulance crew vehicles typically are specially outfitted with onboard
equipment, which is used by firefighters and emergency personnel to
suppress fires, conduct rescue activities, or provide emergency medical
services as part of an official emergency response system. Because
these vehicles are generally specially outfitted with such equipment,
any personal use of these vehicles is likely to be minimal. Thus,
adding unmarked firefighter, rescue squad or ambulance crew vehicles as
a new category of qualified nonpersonal use vehicle is consistent with
the underlying intent of section 274(i).
Accordingly, the proposed regulations would amend Sec. 1.274-
5(k)(2)(ii) to add unmarked vehicles used by firefighters, members of
rescue squads, or
[[Page 95729]]
ambulance crews to the list of qualified nonpersonal use vehicles that
are exempt from the substantiation requirements of section 274(d). In
addition, the proposed regulations would amend Sec. 1.274-5(k) to add
a new Sec. 1.274-5(k)(7) providing definitions for the terms
``unmarked firefighter, rescue squad or ambulance crew vehicles'',
``firefighter,'' and ``member of a rescue squad or ambulance crew,''
and add Sec. 1.274-5(k)(9)(v) (Example 5) illustrating the new
provision.
The proposed regulations provide that the substantiation
requirements of section 274(d) do not apply to an unmarked firefighter,
rescue squad, or ambulance crew vehicle that is required to be used for
commuting by the firefighter or member of a rescue squad or ambulance
crew, who, when not on a regular shift, is on call at all times.
Because any personal use of an unmarked firefighter, rescue squad, or
ambulance crew vehicle should be minimal and incidental to its main
purpose in providing emergency services, the proposed regulations also
provide that personal use of the vehicle, other than commuting and
personal errands, that is outside the firefighter's or rescue squad or
ambulance crew member's obligation to respond to an emergency must be
prohibited by the governmental unit that owns or leases the vehicle and
employs the firefighter or rescue squad or ambulance crew member.
The proposed regulations define an ``unmarked firefighter, rescue
squad, or ambulance crew vehicle'' as a vehicle, that is owned or
leased by a governmental unit, or any agency or instrumentality
thereof, and that is specially outfitted to allow firefighters or
members of rescue squads and ambulance crews to travel safely and
efficiently to the scene of an emergency and provide emergency
services. The description of the types of special equipment found in
the unmarked vehicles is derived from information provided by
stakeholders requesting updates to the current regulations. The
proposed regulations also provide that a license plate marking or
insignia do not disqualify a vehicle from being an unmarked
firefighter, rescue squad, or ambulance crew vehicle.
The definition of ``firefighter'' for purposes of these proposed
regulations, is modeled in part on the definition of ``law enforcement
officer'' in Sec. 1.274-5(k)(6)(ii) and draws from relevant language
in the Public Safety Officers' Benefits Act (PSOB Act)'s definition of
``action outside of jurisdiction'' in 34 U.S.C. 10284(1)(C), as well as
from outside sources. The definition of ``member of a rescue squad or
ambulance crew'' in these proposed regulations is the same definition
that is set forth in 34 U.S.C. 10284(10), which was enacted as an
amendment to the PSOB Act that establishes a framework for the
expeditious and fair processing of claims brought by disabled law
enforcement officers, firefighters, and other first responders or their
survivors. H. Rep. No. 112-548 (2012).
These proposed regulations provide an example of circumstances in
which a member of a rescue squad or ambulance crew assigned an unmarked
vehicle would qualify for the exclusion under this new provision.
Finally, these proposed regulations provide conforming amendments
to Sec. Sec. 1.132-1(g) and 1.132-5(h)(1).
The purpose of these proposed regulations is to ensure that
firefighters and members of rescue squads and ambulance crews who are
officially authorized to use specially equipped unmarked vehicles to
respond to emergencies are accorded the same tax treatment as other
first responders who use qualified nonpersonal use vehicles. The
Treasury Department and the IRS request comments on whether the
definitions of ``unmarked firefighter, rescue squad or ambulance crew
vehicles,'' ``firefighter,'' and ``member of a rescue squad or
ambulance crew,'' are sufficient to accomplish the intended purpose of
these proposed regulations or whether any of them might lead to
potential abuse.
Applicability Date
Proposed Sec. 1.274-5(k)(2)(ii)(S), (k)(7), (k)(9)(v) and
references to Sec. 1.274-5(k)(9) in Sec. 1.132-5(h) are proposed to
apply to tax years beginning on or after the date of publication of
final regulations in the Federal Register. Until the date of
publication of final regulations in the Federal Register, for purposes
of proposed Sec. 1.274-5(k)(2)(ii)(S), (k)(7), (k)(9)(v) and
references to Sec. 1.274-5(k)(9) in Sec. 1.132-5(h), taxpayers may
rely on the guidance provided in these proposed regulations.
Special Analyses
I. Regulatory Planning and Review--Economic Analysis
Pursuant to the Memorandum of Agreement, Review of Treasury
Regulations under Executive Order 12866 (June 9, 2023), tax regulatory
actions issued by the IRS are not subject to the requirements of
section 6 of Executive Order 12866, as amended. Therefore, a regulatory
impact assessment is not required.
II. Paperwork Reduction Act
This proposed regulation does not create new collection
requirements, as defined under the Paperwork Reduction Act (44 U.S.C.
35); and does not alter any previously approved Office of Management
and Budget information collection requirements and their associated
burden.
III. Regulatory Flexibility Act
It is hereby certified that these proposed regulations will not
have a significant economic impact on a substantial number of small
entities pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter
6). This certification is based on the fact that these proposed
regulations do not impose any new or different requirements on small
entities. The proposed regulations would apply only to employers that
utilize unmarked firefighter, rescue squad, or ambulance vehicles and
therefore would affect a relatively small number of entities, most of
which would be public entities. In addition, these proposed regulations
would not affect employment tax reporting or require any additional
substantiation. Rather, the proposed regulations exempt affected
entities from substantiation requirements and for this reason do not
add any economic burden to affected entities. Therefore, a Regulatory
Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required.
IV. Section 7805(f)
Pursuant to section 7805(f), this notice of proposed rulemaking has
been submitted to the Chief Council for the Office of Advocacy of the
Small Business Administration for comment on its impact on small
business.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that agencies assess anticipated costs and benefits and take certain
other actions before issuing a final rule that includes any Federal
mandate that may result in expenditures in any one year by a State,
local, or Tribal government, in the aggregate, or by the private
sector, of $100 million in 1995 dollars, updated annually for
inflation. These proposed regulations do not include any Federal
mandate that may result in expenditures by State, local, or Tribal
governments, or by the private sector, in excess of that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if
[[Page 95730]]
the rule either imposes substantial, direct compliance costs on State
and local governments, and is not required by statute, or preempts
State law, unless the agency meets the consultation and funding
requirements of section 6 of the Executive order. These proposed
regulations do not have federalism implications, do not impose
substantial direct compliance costs on State and local governments, and
do not preempt State law within the meaning of the Executive order.
Comments and Request for a Public Hearing
Before final regulations regarding the definition of qualified
nonpersonal use vehicles are adopted, consideration will be given to
any written or electronic comments on these proposed amendments that
are submitted timely (in the manner described under the ADDRESSES
heading) to the IRS. The Treasury Department and the IRS request
comments on all aspects of the proposed regulations. Any electronic or
paper comments submitted, will be made available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> or upon request.
A public hearing will be scheduled if requested in writing by any
person who timely submits electronic or written comments. Requests for
a hearing are strongly encouraged to be submitted electronically. If a
public hearing is scheduled, notice of the date and time for the public
hearing will be published in the Federal Register.
Drafting Information
The principal author of these regulations is Stephanie L. Caden of
the Office of the Associate Chief Counsel (Employee Benefits, Exempt
Organizations, and Employment Taxes). However, other personnel from the
Treasury Department and the IRS participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, the Treasury Department and IRS propose to amend 26
CFR part 1 as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by revising
the entries for Sec. Sec. 1.132-0 through 1.132-8T and Sec. 1.274-5
to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Sections 1.132-0 through 1.132-8T also issued under 26 U.S.C.
132(o).
* * * * *
Section 1.274-5 also issued under 26 U.S.C. 274(p).
* * * * *
0
Par. 2. Section 1.132-1 is amended by adding a sentence to the end of
paragraph (g) to read as follows:
Sec. 1.132-1 Exclusion from gross income for certain fringe benefits.
* * * * *
(g) * * * In addition, references to Sec. 1.274-5(k)(9) in Sec.
1.132-5(h) are applicable as of [date of publication of final
regulations in the Federal Register].
0
Par. 3. Section 1.132-5 is amended by revising paragraph (h)(1) to read
as follows:
Sec. 1.132-5 Working condition fringes.
* * * * *
(h) * * * (1) In general. Except as provided in paragraph (h)(2) of
this section, 100 percent of the value of the use of a qualified
nonpersonal use vehicle (as described in Sec. 1.274-5(k)) is excluded
from gross income as a working condition fringe, provided that, in the
case of a vehicle described in Sec. 1.274-5(k)(3) through (9), the use
of the vehicle conforms to the requirements of Sec. 1.274-5(k)(3)
through (9).
* * * * *
0
Par. 4. Section 1.274-5 is amended by:
0
1. Redesignating paragraph (k)(2)(ii)(S) as paragraph (k)(2)(ii)(T) and
adding new paragraph (k)(2)(ii)(S);
0
2. Redesignating paragraph (k)(8) as paragraph (k)(9);
0
3. Redesignating paragraph (k)(7) as new paragraph (k)(8) and adding
new paragraph (k)(7);
0
4. In newly redesignated paragraph (k)(9), designating Examples 1
through 4 as paragraphs (k)(9)(i) through (k)(9)(iv), respectively.
0
5. Adding paragraph (k)(9)(v); and
0
6. Revising paragraph (m).
The additions read as follows:
Sec. 1.274-5 Substantiation requirements.
* * * * *
(k) * * *
(2) * * *
(ii) * * *
(S) Unmarked firefighter, rescue squad, or ambulance crew vehicles
(as defined in paragraph (k)(7) of this section).
* * * * *
(7) Unmarked firefighter, rescue squad, or ambulance crew
vehicles--(i) In general. The substantiation requirements of section
274(d) and this section do not apply to an unmarked firefighter, rescue
squad, or ambulance crew vehicle required to be used for commuting by
the firefighter or member of a rescue squad or ambulance crew, who,
when not on a regular shift, is on call at all times. Personal use
(other than commuting) of the vehicle outside the firefighter's or
rescue squad or ambulance crew member's obligation to respond to an
emergency must be prohibited by the governmental unit, or any agency or
instrumentality thereof, that owns or leases the vehicle and employs
the firefighter, rescue squad, or ambulance crew member.
(ii) Unmarked firefighter, rescue squad, or ambulance crew vehicle
defined. An unmarked firefighter, rescue squad, or ambulance crew
vehicle is an unmarked vehicle used by a firefighter, or member of a
rescue squad or ambulance crew, that is owned or leased by a
governmental unit, or any agency or instrumentality thereof, and that
is specially outfitted to allow firefighters or members of rescue
squads and ambulance crews to travel safely and efficiently to the
scene of an emergency and provide emergency services. Onboard equipment
on the vehicles includes but is not limited to lights and sirens,
medical emergency equipment, life-saving devices such as
defibrillators, and radios that assist firefighters, rescue squads, or
ambulance crews in communicating with a central source or other
emergency response crews related, for example, to traffic or hospital
capacity. Onboard equipment may also include items such as personal
protective equipment (helmet, coat, boots), emergency oxygen tanks,
reference books, and laptop computers that enable workers to access
important information related to the emergency. A license plate marking
or insignia does not disqualify a vehicle from being an unmarked
firefighter, rescue squad, or ambulance crew vehicle for purposes of
this paragraph (k)(7).
(iii) Firefighter. The term firefighter means an individual who is
employed by a governmental unit, or any agency or instrumentality
thereof, that is responsible for firefighting, rescue activity, or the
provision of emergency medical care, and other related emergency
services to prevent injury to persons or property and has the official
authority to engage in fire suppression and provide related emergency
services.
(iv) Member of a rescue squad or ambulance crew. For purposes of
this paragraph (k)(7), the term member of a
[[Page 95731]]
rescue squad or ambulance crew has the same meaning as in 34 U.S.C.
10284(10).
* * * * *
(9) * * *
(v) Example 5. Emergency medical technician, X, is a member of a
rescue squad employed by City M. X is provided with an unmarked vehicle
(equipped with sirens and medical equipment) for use in responding to
emergencies. X, along with other members of the rescue squad, is
ordinarily on duty for a regular shift, and on call during the other
hours of the day. X is required to use the unmarked rescue squad
vehicle to commute to X's home in City M. The rescue squad's official
policy regarding unmarked rescue squad vehicles prohibits personal use
(other than commuting) of the vehicles outside the city limits. When
not using the vehicle on the job, X uses the vehicle only for
commuting, personal errands on the way between work and home, and
personal errands within City M. All use of the vehicle by X conforms to
the requirements of paragraph (k)(7) of this section. Therefore, the
value of that use is excluded from X's gross income as a working
condition fringe and the vehicle is not subject to the substantiation
requirements of section 274(d).
* * * * *
(m) Applicability date. This section applies to expenses paid or
incurred after December 31, 1997. However, paragraph (j)(3) of this
section applies to expenses paid or incurred after September 30, 2002,
and paragraph (k) of this section applies to clearly marked public
safety officer vehicles, as defined in paragraph (k)(3) of this
section, only with respect to uses occurring after May 19, 2010. The
rules of paragraphs (k)(2)(ii)(S), (k)(7) and (k)(9)(v) of this section
apply to taxable years ending on or after [date of publication of final
regulations in the Federal Register].
Douglas W. O'Donnell,
Deputy Commissioner.
[FR Doc. 2024-28040 Filed 12-2-24; 8:45 am]
BILLING CODE 4830-01-P
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