Exemption from withholding for any vehicle fringe benefit
(1) Employer election not to withhold
(1)Employer election not to withhold#
The employer may elect not to deduct and withhold any tax under this chapter with respect to any vehicle fringe benefit provided to any employee if such employee is notified by the employer of such election (at such time and in such manner as the Secretary shall by regulations prescribe). The preceding sentence shall not apply to any vehicle fringe benefit unless the amount of such benefit is included by the employer on a statement timely furnished under section 6051.
(2)Employer must furnish W–2#
Any vehicle fringe benefit shall be treated as wages from which amounts are required to be deducted and withheld under this chapter for purposes of section 6051.
(3)Vehicle fringe benefit#
For purposes of this subsection, the term “vehicle fringe benefit” means any fringe benefit—
(A) which constitutes wages (as defined in section 3401), and
(B) which consists of providing a highway motor vehicle for the use of the employee.