Implementing an IRS Compliant Personal Use Reporting Process and Getting Drivers Onboard

A leading crop inputs company faced a compliance challenge following an audit which revealed the need for an IRS compliant Personal Use Reporting process. The company collaborated with Wheels to structure, communicate, and roll out a program that emphasized training drivers on the importance of reporting and the associated processes. This initiative represented a significant cultural shift, making it crucial to educate the field on both the methodology and rationale behind the new system.

Strategy: Effective Change Management and Data Integration

The company worked closely with Wheels to develop and implement a program that would meet IRS compliance requirements and train a large driver base. They built a long-term data integration solution to automate updates of vehicle assignments among drivers and locations. This solution aimed to enhance accuracy and eliminate the need for manual updating. After thorough data clean-up and process improvements, the automation significantly reduced errors and ensured correct vehicle assignments.

The implementation of system changes was complemented by an extensive training program. This program included webcasts, driver communications, and detailed explanations of driver responsibilities.

Results: High Compliance Rates and Enhanced Data Management

The program achieved higher than expected response rates, with over 90% compliance in the US and 93% in Canada for 2022; and 2023 YTD compliance exceeding 93%. The new tools enabled the company to accurately document responsible parties for each vehicle, addressing a previous challenge.

Additionally, the adoption of the fleet management partner’s Mobile Assistant app reached 79% among eligible drivers. The data integration initiative also improved the response rate for registration renewals, a prior concern for the company. By streamlining data collection processes, focusing on reporting, and conducting regular reviews of missing requirements, the company significantly reduced expired units by 94% and missing requirements by 85%.