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IRS Decreases Mileage Rate Starting January 1, 2010In a recent news release, the IRS announced a decrease in the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business or moving purposes. Beginning January 1, 2010 the standard mileage rates for the use of a car (including vans, pickups, or parcel trucks) will be:
The standard mileage rates are based on an annual study conducted by Runzheimer International, an independent contractor commissioned by the IRS. Worldwide ERC® Tax Counsel Peter K. Scott noted "Companies are reminded that if they reimburse transferees for use of an automobile in moving at a higher rate than 16.5 cents per mile in 2010, they will need to include the excess in the employees’ wages." Click here to view the IRS full news release. If you have questions on how the new requirements may affect your relocating employees, please contact Angela Sieber at 888.251.2825 or by email. |