Corporate Tax Compliance Means Tax Savings
IRS plans for vehicle reimbursement are intended to recognize business travel as an expense, not taxable income for the employee and not subject to FICA taxes for the business. Seems simple enough, until you start digging deeper. What about personal use? What happens if the employee furnishes the vehicle, but the company provides a fuel card? If you’ve been involved in your company vehicle program, you know that there are many possibilities for confusion.
CarData will take the onus of navigating tax laws off your company. Based on our experience and familiarity with current tax regulations, we’ll devise an IRS-compatible program that saves money for all stakeholders.

Three Ways a FAVR Benefits Your Company
IRS compliance is just one way that CarData VRPs can help.
Reduce Risk & Liability
- Assume legal responsibility only when appropriate
- Eliminate gas card fraud – card cloning, account hacking and PIN interception
- Align insurance coverage properly, based on 12-point inspection processed and reviewed by our special services department
Meet Corporate Goals
- Address shifting accounting regulations around leases and assets
- Drastically reduce administrative resource allocation and costs
- Reimburse for business use only
Build a Fair & Flexible Plan
- Employees choose a vehicle that fits their job and lifestyle
- Vehicle equity stays with the employee
- Reimbursement is non-taxable