Friday, December 04, 2009

IRS announces 2010 mileage reimbursement rates

From the Worldwide ERC
The new rates, which the IRS said reflect lower costs of operating vehicles compared to a year ago, are 50 cents per mile for business use (down from 55 cents per mile in 2009), and 16.5 cents per mile for moving (down from 24 cents per mile in 2009).  The reduction in the rate for moving is particularly large, and results in the lowest such rate since 2005.

Worldwide ERC® Tax Counsel Peter K. Scott noted that “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."

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