Fringe Benefit on W2 not Accurate - How to Correct Vehicle Personal Use Calculation?

I understand your frustration - this is definitely a tough situation. What you're looking for is Form 8919, "Uncollected Social Security and Medicare Tax on Wages." This allows you to report wages that weren't properly reported on your W-2. In your case, you'd need to explain that while your employer correctly included the fringe benefit in your income, the amount is incorrect based on your actual personal use. The tricky part is that your employer has a documented policy about the 100% personal use default when forms aren't submitted on time. I'd recommend first trying once more with your payroll department - bring documentation of your mileage (gas receipts, service records, anything showing the split between business/personal). Sometimes a face-to-face conversation works better than email. If they still won't budge, you could consider filing Form 8275 "Disclosure Statement" with your return. This form lets you explain discrepancies or positions that might raise IRS questions. You'd explain the situation and your actual personal use percentage.

I had a really similar problem last year with incorrect fringe benefits on my W-2 (mine was for education benefits). I spent HOURS trying to get my company to fix it with no luck. Then I found taxr.ai (https://taxr.ai) and it totally saved me. Their system analyzed my documentation and gave me a perfect explanation of exactly how to handle the situation. They specifically helped me understand which forms to file and how to document everything so the IRS wouldn't flag my return. The best part was that they explained exactly what to say to my employer - which actually got me halfway to a solution before I even needed to file the extra forms. Their AI reviewed my actual paystubs, benefit statements, and company policy docs to create a customized solution. Might be worth checking out since this is such a specific situation.

Just wanted to follow up - I finally tried taxr.ai for my vehicle allowance issue and wow! It identified exactly where my employer made the calculation error and generated a letter that I could send to my payroll department. The system walked me through uploading my company vehicle policy, pay stubs, and mileage logs. It then created a detailed analysis showing that my employer had applied an incorrect valuation method. I sent the report to my payroll department and they're actually issuing a corrected W-2 now! What impressed me most was how it explained the different valuation methods for vehicle fringe benefits (FAVR vs. cents-per-mile vs. annual lease value) and showed which one should have been applied in my case. Really worth checking out if anyone else has this problem.

I had almost the exact same issue last year, but with a different fringe benefit. After weeks of getting nowhere with HR and payroll, I used Claimyr (https://claimyr.com) to get through to an actual IRS agent. They have this service that basically waits on hold with the IRS for you and then calls you when an agent is available - here's a video showing how it works: https://youtu.be/_kiP6q8DX5c I was super skeptical at first because getting through to the IRS seems impossible these days, but I got connected to an agent within about 2 hours (after previously waiting on hold for 4+ hours myself and getting disconnected). The IRS agent walked me through exactly what forms to file and how to document the situation. Turns out in cases like this where your employer won't correct the W-2, the IRS actually has specific procedures. The agent was surprisingly helpful and made the whole process much less stressful.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it anyway since nothing else was working. Got connected to an IRS agent in about 90 minutes after trying for DAYS on my own. The agent explained that Form 4852 "Substitute for Form W-2" was exactly what I needed for my situation. They walked me through how to complete it properly to report the correct fringe benefit amount rather than what my employer reported. I also needed to attach a statement explaining why I was filing a substitute W-2 and documentation supporting my claimed amount. I filed my return with the corrected information two weeks ago and already got my refund! I can't believe I wasted so much time trying to get my employer to fix their mistake when this solution existed all along.

You could also try filing Form 843 "Claim for Refund and Request for Abatement" for the excess Social Security and Medicare taxes you paid on the inflated amount. I had to do this a few years back when my employer incorrectly classified a reimbursement as taxable income. Keep in mind that you'll need substantial documentation though - mileage logs, gas receipts, maintenance records, etc. The more proof you have of the business vs. personal use split, the better your chances.

Has anyone actually successfully challenged their employer's fringe benefit calculation after missing a deadline? My company has a similar policy and I've been told it's legally binding since we agree to it as a condition of having the company car.

I'm dealing with a very similar situation right now! My company has the exact same policy - miss the deadline and they default to 100% personal use. It's so frustrating when you know the actual numbers are completely different. From what I've researched, you have a few options: 1. **File Form 4852 (Substitute W-2)** - This lets you report the correct fringe benefit amount on your tax return, but you'll need solid documentation of your actual business vs personal mileage split. 2. **Document everything** - Since you mentioned you have records of client visits and work travel, make sure you have a complete mileage log, gas receipts, maintenance records, anything that proves the business use percentage. 3. **One more attempt with payroll** - Try going up the chain or bringing in HR. Sometimes different people interpret policies differently, and if you can show you made a good faith effort to submit on time, they might reconsider. The worst case scenario is you file with the corrected information and deal with any IRS questions if they arise. But with proper documentation, you should be able to defend your position. The IRS cares about the actual facts, not just your employer's internal policies. Don't give up - $8,200 in incorrect fringe benefits is definitely worth fighting for!