The Internal Revenue Service today announced that it is lowering its 2010 standard mileage rate to 50 cents per mile from the 55-cent rate for 2009.
Effective Jan. 1, 2010, IRS's lower standard mileage rate will "reflect generally lower transportation costs compared to a year ago." The rate is calculated by Runzheimer International and is the standard that businesses use to calculate the reimbursable cost to travelers who use their personal vehicles for business.
While not a requirement, 74 percent of 200 corporate traveler buyers said they relied on the IRS rate to reimburse their drivers, according to BTN research fielded this year. Still, IRS said, "Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates." According to BTN's survey, 9 percent of companies formulate their own fixed rate, while nearly 6 percent said they use an internally developed fluctuating rate.
As in past years, gasoline costs are a significant factor in determining the rate, but other costs, including depreciation, are taken into account in formulating the rate, IRS said.
— Nielsen Business Media