12.12.2007
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| IRS updates standard mileage rate
IRS updates standard mileage rate
12/12/07 Quote:
The Internal Revenue Service on Nov. 27 issued Revenue Procedure 2007-70, which updates the standard mileage rate to use in 2008 in computing the deductible costs of operating a personal vehicle for business purposes.
This update further amplifies the importance of Revenue Ruling 2006-56, in which the IRS applied the per diem and accountable plan rules outline in Rev. Proc. 2007-63, and deemed what constitutes a long-haul trucking company’s per diem reimbursement plan as abusive under the accountable plan rules. Rev. Proc. 2007-70 specifically mentions Rev. Ruling 2006-56 as guidance for treatment of excess mileage reimbursements made under a deemed abusive accountable plan.
Rev. Proc. 2007-63 addresses excess per diem payments that are not tested, along with what happens when they are tested by the IRS and it is determined that excess per diem was paid and was not reimbursed by the driver back to the company or added back to the driver's W-2 income on at least a monthly basis. Rev. Proc. 2007-63 addresses the circumstances where a pattern of abuse may exist, and the penalties that may apply if the abuse is so determined.
| http://www.etrucker.com/apps/news/article.asp?id=65282 |
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