IRS Releases 2011 Standard Mileage Rates

The IRS released on Friday the standard mileage rates for use in 2011 ( Notice 2010-88 ). The optional standard mileage rates can be used by taxpayers to calculate the deductible costs of operating an automobile.


For business use of an automobile after Dec. 31, 2010, the rate is 51 cents a mile; for medical or moving expenses, 19 cents a mile; and for services to charitable organizations, 14 cents a mile. For tax year 2010, the rates were 50 cents, 16.5 cents and 14 cents, respectively.


Rather than using the standard mileage rates, taxpayers may instead use their actual costs, if they maintain adequate records and can substantiate their expenses. In Revenue Procedure 2010-51 , also issued Friday, the IRS provides the rules for substantiating these amounts.


The notice also gives the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate (22 cents a mile in 2011) and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate plan ($26,900 for automobiles and $28,200 for trucks and vans).


The IRS also announced that it will stop issuing an annual revenue procedure to update the standard mileage rates and will instead “publish modifications as required” in a separate notice. Rev. Proc. 2010-51 will remain in effect until superseded by later guidance.


Revenue Procedure 2010-51 prohibits a taxpayer from using the business standard mileage rate to compute the deductible expenses of five or more automobiles a taxpayer owns or leases and uses simultaneously. The IRS has requested comments on this issue. Comments should be made by March 31, 2011, and can be sent to, with Notice 2010-88 in the subject line.


More from the JofA:


 Find us on Facebook      Follow us on Twitter



Year-end tax planning strategies

Practitioners should consider the timing of income and deductions, avoiding the net investment income tax, donating to charity, and planning for retirement.


Effortless payroll service offerings

In this special focus report, experts explain how payroll providers can help CPAs help their clients. Sponsored by Paychex, Intuit, SurePayroll, ADP, BenefitMall and AccountantsWorld.


Return due dates changed in highway funding bill

The federal highway funding extension bill signed into law on July 31 contains several tax provisions, including changing the due dates for partnership, S corporation, and corporate tax returns.