The State Worker

Chronicling civil-service life for California state workers

February 8, 2010
IRS to audit state vehicles; Health Care Services' info breach

100208 IRS logo.JPGThe IRS wants a peek at how state employees used state-owned and state-leased vehicles in 2008.

A Jan. 27 memo from Department of General Services Acting Director Ron Diedrich lays out the info that federal auditors want:

The Department of General Services (DGS) has been informed by the State Controller's Office (SCO) that the Internal Revenue Service (IRS) will be conducting an audit regarding tax reporting associated with personal use of state-owned or -leased vehicles. Specifically, the IRS has requested that DGS assist the SCO by obtaining a list of all civil service and exempt employees from each department and agency that had state-owned or -leased vehicles assigned to them and/or home storage permits authorized during calendar year 2008. This list must include: 1) Employee Name; 2) Social Security Number; 3) Date Vehicle or Home Storage Permit was assigned that coincides with the 2008 calendar year.

The SCO is working closely with the Department of Personnel Administration to prepare for an eighteen-month IRS audit. The IRS informed the SCO that it will issue summons for payroll records to review State employee tax reporting associated with the taxable event
triggered by the use of an employer-provided vehicle for personal use,

The Controller's Office confirmed that the IRS is conducting a state vehicle audit. The Diedrich memo says that departments and agencies have until today to fax their lists to the SCO. The IRS starts digging in on Tuesday.

Click here to read the entire Diedrich memo.

Hat tip to blog user T for bringing this to The State Worker's attention.

In an unrelated breaking story on our sister blog, Capitol Alert, Bee colleague Andrew McIntosh has this report:

The Department of Health Care Services said today it may have breached the privacy of 49,352 state residents who receive adult day health care services from the state.

In a terse news release, the department said that letters it mailed a week ago to 49,352 beneficiaries wrongly included those patients' Social Security Number on address labels.

The Department said the incident took place Feb. 1. It was notified of the error on Feb. 4. It started to notify the 49,352 beneficiaries about the problem on Sunday.

Click here for more.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at


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