1.14.9 IRS Parking Program

Manual Transmittal

June 21, 2011


(1) This transmits the new IRM 1.14.9, IRS Parking Program.

Material Changes

(1) This new section provides guidance for managing, allocating and assigning parking at all government-owned or leased IRS facilities and for managing taxable parking benefits.

Effect on Other Documents



All divisions and functions

Effective Date


J. Stuart Burns
Director, Real Estate and Facilities Management


  1. The IRS Parking Program provides guidance for the management, allocation and assignment of parking at all government-owned or leased IRS facilities and identifies employee and manager responsibilities related to taxable parking benefits.


  1. The IRS Parking Program is based on the following statutes, Executive Orders, regulatory standards and agency directives:

    1. Federal Employees Clean Air Incentive Act, Pub. L. 103-172, 5 U.S.C 7905

    2. Architectural Barriers Act (ABA) of 1968, Pub. L. 90-480, Aug. 12, 1968, 42 USC ¶4151 et seq.

    3. Public Buildings Act of 1959, Pub. L. 86-249, 40 USC ¶3 301-3315.

    4. Executive Order 12191, February 1, 1980, Federal Facility Ride-Sharing Program.

    5. Executive Order 13150, April 21, 2000 requires incentives for employees to use public transportation.

    6. Federal Management Regulations 41 CFR Part 102-71 http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfr102-71_06.html

    7. Federal Management Regulations 41 CFR Part 102-74 http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfr102-74_06.html

    8. Parking Reimbursements, Revenue Ruling 2004-98 http://www.irs.gov/irb/2004-42_IRB/ar08.html

    9. Executive Order 13423, January 24, 2007, requires Federal agencies to reduce energy intensity and set fleet petroleum reduction targets.

    10. Executive Order 13514, October 5, 2009, sets sustainability goals for Federal agencies and requires them to set a 2020 Greenhouse Gas emissions target.

    11. Treasury Directive 74-08: Department of the Treasury Parking Directive.

    12. GAO-04-261SP Appropriations Law-Volume I, Chapter 4, 13.j.

Memorandum of Understanding

  1. The following Memorandum of Understanding (MOU) applies to IRS Parking Program: Memorandum of Understanding Between Mission Assurance (now AWSS Physical Security and Emergency Preparedness [PSEP]) and Real Estate and Facilities Management (July 30, 2004), to identify roles and responsibilities for the management of IRS parking. http://awss.web.irs.gov/Facilities/PoliciesandProcedures/ParkingMOU_MAandREFM.pdf.


  1. REFM Territory Managers (TMs) are responsible to:

    1. Ensure that public transportation alternatives and that space, facilities and services for bicycles are made available to employees and visitors whenever possible;

    2. Ensure that parking is allocated for official vehicles and to disabled employees, executives, visitors, employees and others in accordance with the priorities established by the referenced regulations;

    3. Coordinate with GSA for the equitable allocation of parking space for IRS in federal buildings;

    4. Maintain parking lots and in cooperation with PSEP, establish and enforce local parking regulations;

    5. Ensure that adequate controls are in place to monitor the temporary use of parking for disabled employees; and

    6. Monitor parking costs, and ensure that all IRS recipients of parking that is valued in excess of the yearly ceiling amount have completed Form 9606 (Rev. 12-2002) http://core.publish.no.irs.gov/forms/internal/pdf/20463102.pdf, Taxable Parking Benefits and that this form is submitted to the Beckley Finance Center.

Allocation and Assignment of Parking

  1. IRS will provide parking space for official government-owned or leased vehicles whenever possible.

  2. The Federal Management Regulations (FMR) establish the following priority for assignment of parking in 102-74.285:

    1. Official postal vehicles at buildings containing the U.S. Postal Service's mailing operations;

    2. Federally owned vehicles used to apprehend criminals, fight fires and handle other emergencies;

    3. Private vehicles owned by members of Congress (but not their staffs);

    4. Private vehicles owned by federal judges (appointed under Article III of the Constitution), which may be parked in those spaces assigned for the use of the Court, with priority for them set by the Administrative Office of the U.S. Courts;

    5. Other federally owned and leased vehicles, including those in motor pools or assigned for general use;

    6. Service vehicles, vehicles used in child care center operations, and vehicles of patrons and visitors (federal agencies must allocate parking for disabled visitors whenever an agency's mission requires visitor parking); and

    7. Private vehicles owned by employees, using spaces not needed for official business.

  3. Futhermore, the FMR directs federal agencies to assign available parking spaces to their employees using the following order of priority in 102-74.305:

    1. Severely disabled employees (see definition in FMR Sec.102–71.20);

    2. Executive personnel and persons who work unusual hours;

      1. For purposes of parking, the FMR defines an Executive as a government employee with management responsibilities who, in the judgment of the employing agency head or his/her designee, requires preferential assignment of parking privileges.

    3. Vanpool/carpool vehicles;

    4. Privately owned vehicles (POVs) of occupant agency employees that are regularly used for government business at least 12 days per month and that qualify for reimbursement of mileage and travel expenses under government travel regulations.

    5. Other privately owned vehicles of employees, on a space-available basis. (In locations where parking allocations are made on a zonal basis, GSA and affected agencies may cooperate to issue additional rules, as appropriate).

  4. For purposes of parking the following definitions found in 41 CFR 102–71.20 apply. http://edocket.access.gpo.gov/cfr_2003/julqtr/pdf/41cfr102-71.20.pdf

    1. Unusual hours means work hours that are frequently varied and do not coincide with any other regular work schedule. This includes individuals who regularly or frequently work significantly more than 8 hours per day. Unusual hours does not include shift workers, those on alternate work schedules or those granted exceptions to the normal work schedule (e.g. flex-time);

    2. Disabled employee means an employee who has a severe, permanent impairment that for all practical purposes precludes the use of public transportation, or an employee who is unable to operate a car as a result of permanent impairment who is driven to work by another. Priority may require certification by an agency medical unit, including the Department of Veterans Affairs or the Public Health Service;

    3. A vanpool means a group of at least 8 persons using a passenger van or a commuter bus designed to carry 10 or more passengers. Such a vehicle must be used for transportation to and from work in a single daily round trip;

    4. A carpool is a group of two or more persons who use a motor vehicle for transportation to and from work.

  5. For the purposes of this program, the following IRS definition applies:

    1. An Executive is an employee hired for an Senior Executive Service (SES), senior level or critical pay position. GS-14, GS-15 or pay-banded IR series employees are not categorized as executives.

Visitor Parking

  1. The IRS may procure parking for IRS customers when it is determined that adequate modes of public transportation are not available to the site or that an adequate combination of public transportation and commercial parking facilities is not available.

Employee Parking

  1. In most instances appropriated funds will not be used to procure employee parking. The Office of the Comptroller General has determined that parking is a personal expense that is the responsibility of the employee, 43 Comp. Gen. 131, August 5, 1963. Since it is the Government's stated position to encourage the use of public transportation (Public Law 103–172), IRS should not take actions to acquire space that will encourage employees to drive to work rather than use public transportation.

Mission Essential Parking

  1. In certain situations parking may be procured when the IRS determines, for legitimate reasons, that to provide parking for employees is mission essential. The use of public transportation shall not be discouraged; and limited availability of parking and inconvenience are not factors which by themselves can justify a determination that parking is essential (43 Comp. Gen. 131, August 5, 1963);

  2. After a requesting organization determines parking is mission essential, the REFM TM shall contact local government officials to determine whether improvements can be made in public transportation (i.e. additional buses or route changes), if additional public parking can be made available or if any reasonable solution can be found beyond acquiring additional parking spaces;

  3. The criteria to evaluate whether parking is mission essential are:

    1. Inadequate availability of public transportation and public parking. However, public parking should not be over-emphasized in relationship to public transportation;

    2. Need to provide a safe work environment for employees, for example when shifts end at time when normal public transportation or public parking are either not available or not safely accessible;

    3. Need to competitively recruit and retain employees in situations involving tight job market conditions.

  4. Parking must not automatically be procured on a one-to-one ratio for all employees, even when some parking is considered mission essential. In most instances, the business units will submit their parking requirements to their servicing REFM TM for review and inclusion in a Request For Space, (GSA Standard Form-81) to GSA or the Real Property Leasing Officer (RPLO). However, for new or leased construction, GSA or the RPLO shall conduct a parking survey with the local REFM territory office to determine the specific number of parking spaces to be provided for official, visitor and employee vehicles. The survey should consider need based on the adequacy of public transportation, the availability of commercial or public parking facilities, employee shifts and other concerns such as environmental quality and energy consumption;

  5. Facilities most likely to meet the mission essential criteria are the ten campuses and computing centers. However, for each new procurement and assignment of space, regardless of location, parking requirements shall be reassessed, due to changing conditions in such things as federal laws, executive orders and regulations; local real estate markets; labor pools; available transportation; hours of duty, and the need to provide accessibility to the disabled.

Parking for Employees with Disabilities

  1. IRS has established the IRS Disability Office (IDO). Information on the Reasonable Accommodation (RA) program can be found on the HCO website.

  2. The Government Accountability Office (GAO) has determined that an agency may not pay for commercial parking for employees with disabilities, even when there are no government-owned or controlled parking facilities available. An exception is warranted when the employee is required to pay substantially higher commercial parking costs than those generally paid by non-disabled employees who are able to utilize less expensive facilities at a greater distance from the office (63 Comp.Gen. 270,1984,B-211812.) In these instances, the government may pay the difference between the two rates;

  3. The government may also pay if the employee would be excluded from accessing the site if the government did not provide parking. This situation occurs when the location or accessibility of public transportation or commercial parking facilities place unreasonable physical demands or impose undue safety risks on employees with disabilities. When there is doubt about availability, the government shall pay for the spaces so that reasonable accommodation is provided;

  4. When an employee with disabilities must use a personal vehicle in performance of his or her duties and there is no way to ensure availability of continuous accessible parking without the government procuring the space, parking may be paid by the government. For example, urban locations may have limited accessible parking spaces that might not be available to employees if the government did not procure them with the lease;

  5. Drivers who regularly provide employees with disabilities with rides to work shall be given disabled parking preference;

  6. Employees with temporary disabilities may be allocated temporary use of existing parking for the disabled. However, use of the parking space should be limited to the projected time period of the temporary disability that impairs a major life function. The REFM TM shall ensure that adequate controls are in place to monitor temporary parking.

Use of Privately Owned Vehicles for Official Business

  1. Generally, the need to acquire parking for employees who use their POVs for official business is determined in the same manner as the need to provide parking for other employees. For information on reimbursement for parking fees to employees who use their POVs for official business, refer to IRM, Official IRS Travel Guide.

Contractor Parking

  1. The Government will generally not provide free parking spaces for contractors. However, when excess free parking is available, contractors may be allowed to park free with the understanding that IRS requirements have priority. There may also be instances when service contractors, such as building or machine maintenance contractors may be provided with temporary free parking while performing IRS contract work if parking spaces are already available. This stipulation should be included in the service contract. Decisions regarding contractor parking should be based on the most cost-effective method consistent with market conditions and policy for the particular site.

Parking Availability in Government-Owned Facilities

  1. After all official parking has been assigned according to the priority established in FMR 102–74.285, the federal agency buildings manager must allocate space available for employee parking among occupant agencies on an equitable basis, such as by allocating such parking in proportion to each agency's share of building space, office space or total employee population. In certain cases, federal agencies may allow a third party, such as a board composed of representatives of agencies sharing space, to determine proper parking allocations among the occupant agencies;

  2. If IRS has a need for additional parking for official business, that requirement should be met by a reduction in non-mission essential parking. If this affects bargaining unit employees, NTEU shall be notified in advance. As long as non-mission essential parking exists for IRS in a federal facility, IRS may not procure additional parking until all of these non-mission essential spaces are converted to official business or mission essential parking.

Parking Availability in Leased Facilities

  1. IRS is not precluded from accepting parking privileges for its employees when local ordinances require that the owner provide off-street parking for occupants of the building and the owner is prevented from charging separately for such parking privileges.

  2. IRS is not precluded from including provisions in a lease requesting that the offeror identify the amount and cost of parking that can be made available to employees to acquire on their own. Suggested language for the Solicitation for Offers (SFO) is as follows: "A combination of public transportation, on-site parking and commercial parking facilities must be available to service ___ employees within a 2,000 walkable linear foot radius. The adequacy of public transportation will affect the amount of parking that must be available. The amount of parking available on site must at least meet the current local code requirements. Allocation of all available on-site parking must be coordinated with a designated Government official to ensure that priority consideration is give to official vehicles, disabled employees, employees working shifts or other unusual hours, and vanpools / carpools. The Lessor should identify the number and amount of parking spaces available to the Government or its employees as well as the cost per space and annual escalations."

  3. It is preferred, but not required, that IRS ask GSA or the RPLO to negotiate all charges for parking, even if the cost is an employee expense, to gain savings through economies of scale and to ensure that charges are fair and reasonable.

Parking for Criminal Investigation

  1. Since government vehicles assigned to Criminal Investigation (CI) are used in the apprehension of criminals, these vehicles are assigned a higher priority for parking in FMR 102–74.285. (See IRM (2) b) above.

  2. CI has an obligation to bring prisoners, informants, firearms and equipment in and out of a building and away from the public as inconspicuously as possible. Where physically practicable, at least one parking space assigned to CI shall be located adjacent to or near a building's freight elevator, loading dock or service entrance. When acquiring a new lease, the REFM Territory Manager shall ensure that the Solicitation for Offers (SFO) includes this provision in the special requirements. In facilities that also have reserved parking for official vehicles from other federal agencies, CI and the REFM TM shall work with GSA, or the RPLO, and the other agencies to meet this requirement.

  3. Each parking space reserved for a CI government vehicle shall be identified with a sign stating "Reserved for Federal Government Vehicles."

Collective Bargaining Agreements

  1. IRS may require and pay for employee parking only when a determination is made that parking is essential to the mission of the IRS, as stated in the criteria in, "Mission Essential." Collective bargaining agreements related to parking must be consistent with federal laws and regulations.

  2. Article 11, Section 11 of the 2009 National Agreement II between IRS and the National Treasury Employees Union (NTEU) states in part: "The Employer will bargain with the Union at the national level to the extent required by law if free parking is not provided to employees where employees previously were provided free parking and free parking is determined to be mission critical."

  3. Parking provided free of charge to employees at Federal buildings is allocated to agencies based on their percentage of occupancy and not on the determination that parking is mission essential. When a move from a Federal building to a leased location occurs and free parking for employees was provided at the Federal building, the provisions of Article 11, Section 11 of the National Agreement will apply.

Submission of Requests to GSA or RPLO to Acquire Parking

  1. Analysis of parking requirements will be performed by the requesting Business Unit and forwarded to the REFM TM for action. The REFM TM will review the requests and forward them to GSA or the RPLO for the acquisition of parking. In some instances GSA may delegate the authority back to the IRS for procurement.

Use of IRS Procurement Authority

  1. If GSA has no available parking spaces, IRS is permitted to use its own procurement authority to obtain parking. The cost of such procurements should be paid from the requesting organization's service and supply budget, and not from rent. IRS may not use this authority without a determination of mission need as described in IRM The procedures for requesting parking via purchase order will be determined locally.

Approval Authorities

  1. Whenever parking is limited and is allocated as prescribed in IRM, and in cases where new, additional or replacement parking is requested, approval must be obtained as follows:

    1. General: In all cases of employee parking, the request must be made at the appropriate managerial level of the requesting organization, and approved by the overseeing executive.

    2. Parking requests for an Executive must be approved by the overseeing manager.

    3. Official Parking: The requesting organization must prepare a certification, approved by the appropriate business unit manager, stating that the parking space is for official Government-owned or leased vehicles and forward this to the REFM TM. When vehicles are leased through GSA, the license plate numbers of the vehicles are to be provided to the REFM TM unless the vehicles has a suppressed license plate number. Annual re-certifications are to be provided to the REFM TM.

    4. Employee Parking - Mission Essential and POV for Official Business: The requesting organization must prepare a written determination that explains why the parking is mission essential. This determination should also specify how many spaces are required and the basis for determining this number, and be approved as described in a) above.

    5. Parking for the Disabled: The requesting organization must prepare a justification that includes a determination of Reasonable Accommodation (Form 13661), that specifies under what exceptions the parking is being requested as discussed in IRM

    6. Visitor Parking: The requesting organization must submit written documentation to the REFM TM, approved at their executive level, stating that adequate modes of public transportation or commercial parking facilities are not available to the site.


  1. Rent for parking assigned to IRS from GSA, either in a government owned or leased facility, will be coded to the requesting organization if GSA bills it through the rent. However, if IRS acquires parking through a purchase order or similar document, the requesting organization must fund the parking from their services and supplies budget.

Release of Parking

  1. If conditions change, or an election is made to save costs, IRS may request a reduction or elimination of parking. If this affects parking for bargaining unit employees, advance notification of such changes shall be made to NTEU through the servicing labor relations office.

Taxable Parking Benefits

  1. Whenever parking is provided to an employee and the value of parking exceeds $230 per month, the excess amount over $230 is considered taxable income and must be included in the employee's wages reported on their Form W-2, (Note that $230 is the current ceiling as of 2010. This figure may be adjusted based on the annual cost of living and may be adjusted based on the annual cost of living and may be found in The Employer's Tax Guide to Fringe Benefits Provided in 2010 [or current year], (Publication 15-B, December 3, 2009, [or current date] paragraph entitled " Qualified Transportation Benefits." )

  2. Generally the value of parking provided by an employer to an employee is based on the cost (including taxes or other added fees) that an individual would incur in an arm's-length transaction to obtain parking at the same site. If that cost is not ascertainable, then the value of parking is based on the cost that an individual would incur in arm's-length transaction for a space in the same lot or in a comparable lot in the same general location under the same or similar circumstances. An employee's subjective perception of the value of the parking is not relevant to the determination of its fair market value.

  3. For this program, the value of parking provided by the IRS to an employee will be based on the GSA rent charge if the parking is located in a federal building, or the lease cost if the parking is provided under a lease agreement. If the IRS paid parking is located on a privately owned parking lot and acquired via service contract, the current contract rate will determine the value.

Procedures for Taxable Parking Benefits

  1. For those locations where parking is valued in excess of $230 per month, the REFM TM must have the recipient complete a Form 9606 (Rev. 12-2002) http://core.publish.no.irs.gov/forms/internal/pdf/20463102.pdf,Taxable Parking Benefits.

  2. The REFM TM will mail the completed form to the Beckley Finance Center, PO Box 9002, Beckley, WV 25802 (keeping a copy for the territory file and giving a copy to the employee). The form may also be faxed to the Beckley Finance Center at (304) 256–6003. The Beckley Finance Office must receive the form by the end of the calendar year in which the benefit was received.


  1. This guidance applies to all new requests for parking and to the replacement of existing leases and parking contracts as they expire. Existing contracts and leases do not have to be modified.

  2. Nothing stated in this IRM shall be construed as a right of reimbursement to employees for parking fees paid prior to implementation of the program.