e-Alerts

e-Alert – IRS Releases 2020 Mileage Rates

By January 2, 2020 No Comments

Background

On Dec. 31. 2019, the Internal Revenue Service (IRS) issued the 2020 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Summary

Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 57.5 cents per mile driven for business use (down from 58 cents in 2019);
  • 17 cents per mile driven for medical or moving purposes (down from 20 cents in 2019); and
  • 14 cents per mile driven in service of charitable organizations (unchanged).

For more information click here.

Next Steps for Employers

  • Employer should inform any employees who use their personal motor vehicle for business of the new rates, and make sure any deductions made since January 1 comply. If you have any additional questions regarding the standard mileage rate, feel free to contact us.

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