The Internal Revenue Service has reduced the business mileage reimbursement rate for one half of a cent to 53.5 cents from 54 cents. The new rate went into effect on Jan. 1.
It’s every fleet manager’s responsibility to develop a fair, equitable, but proper personal use charge policy. There are a number of ways to do so to make certain that both the driver and the company are treated fairly.
While expense fraud related to mileage is often unintentional, whether it’s deliberate or not it can cost companies with fleets millions of dollars in overpayments. The good news is there are simple ways to combat it.
The Internal Revenue Service has lowered the deductible mileage rate to 54 cents per mile for business miles in 2016 down from 57.5 cents in 2015, the agency has announced.
A perennial question facing management is whether it makes business sense to provide company vehicles or to reimburse employees for the use of their personal vehicles. Some believe it will cost less, but the reality is different.
As a general rule when considering total cost of ownership (TCO), employees with high-mileage needs should be provided with a company vehicle; those with low-mileage needs should have their job function reviewed to determine if personally owned vehicles (POVs) would produce the lowest TCO through a business reimbursement program.
The Internal Revenue Service lowered the business mileage deduction by 0.5 cents to 56 cents per mile effective Jan. 1. The 2014 rate decreases the 2013 rate of 56.5 cents, which went into effect Jan. 1, 2013.
Last August, the IRS announced areas it will prioritize for audits in 2014, one of which is fringe benefits, especially the personal use of company vehicles. Managing personal-use compliance is a headache. It is also expensive, with internal costs ranging from $35 to $75 per year per vehicle. Here's what you need to do to be prepared should your friendly IRS agent come knocking on your front door.
Many eligible fleets may be leaving money on the table by not filing for alternative-fuel tax credits. The filing process isn’t as tricky as it may appear to be.
WASHINGTON - The new IRS mileage reimbursement rate reflects an increase of 1 cent, up from 55.5 cents per mile in 2011 and 2012.
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