The IRS has issued mileage rates for 2024.
Starting January 1, 2024, the standard mileage rates will be:
Rates were published in Notice 2024-08, 2024 Standard Mileage Rates[JU1] .
The IRS has issued mileage rates for 2023.
Starting January 1, 2023, the standard mileage rates will be:
Rates were published in Notice 2022- 234 – Optional Standard Mileage Rates.
IR2022-234 also states:
“These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
“The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
“It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.
“Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.”
The IRS has changed the mileage rates for the last half of 2022.
Starting July 1, 2022, the standard mileage rates will be:
Rates were published in Notice 2022-13 – Optional Standard Mileage Rates.
The IRS has published the reference amounts for mileage rates for 2022. The rates:
Beginning on January 1, 2022, the standard mileage rates for the use of a vehicle will be:
The standard rate for business is based on their analysis of the fixed and variable costs of operating a vehicle. The medical & moving rate is based on variable costs of operation.
Rates were published in Notice 2022-03 2022 Standard Mileage Rates.
The IRS has published the reference amounts for mileage rates for 2021. The rates:
Beginning on January 1, 2021, the standard mileage rates for the use of a vehicle will be:
The business mileage rate decreased one and a half cents for business travel driven and one cent for medical and certain moving expense from the rates for 2020. The charitable rate is set by statute and remains unchanged.
The business rate is down from 57.5 cents in 2020 and 58.0 cents in 2019, which in turn was up from 54.5 in 2018.
The standard rate for business is based on their analysis of the fixed and variable costs of operating a vehicle. The medical & moving rate is based on variable costs of operation.
Rates were published in Notice 2021-02: 2021 Standard Mileage Rates.
Listened to CalCPA’s virtual Not-for-profit conference today.
Lots of great stuff during the sessions. Three items were worth sharing on Twitter during the day. Thought I’d share them here as well:
How to account for PPP forgiveness.
There are lots of details and nuances to the federal Paycheck Protection Program. I’m not up to speed on PPP so I won’t be commenting on the program, especially the forgiveness rules.
There is a growing volume of information on the ‘net describing the program. Here are some resources you can check out to learn more.
SBA forgiveness application
5/15/20 – Small Business Administration – Paycheck Protection Program Loan Forgiveness Application,” Small Business Administration, – The SBA published the text of the forgiveness application.
Commentary on forgiveness application
If you are in leadership or on the finance team of a faith-based not-for-profit organization, you really, really need to read the Faith-Based Organizations FAQ From The Small Business Administration:
The document is dated 4/3/20.
Read this document if you have applied or are thinking about applying for a loan under the Paycheck Protection Program.
An issue in the back of many people’s mind is whether any federal assistance under this program will infringe on religious freedom. I think you will be quite pleasantly surprised by reading the FAQ.
Please read the article. You might want to make a copy for your file.
ECFA presented a webcast Navigating Critical Legal Issues in the COVID-19 Crisis on 4/7/20. If this condensed summary of issues is at all interest to you, check out their website,www.ECFA.org. Webcast is now available at no charge if you are a registered member or if you are an ECFA member. Registered status is free.
I won’t be giving any legal advice here. Instead I will merely identify issues for you to consider. Consult with your attorney if you need to go in depth.
A long yet partial list of legal issues to consider
Intentionally assess whether you perceive taking a PPP loan under the SBA rules will have any effect on your ability to exercise your religious freedom. Webcast provides good guidance.
OSHA – there are general rules under federal OSHA and state equivalent regulations affecting the workplace. These may be more significant in a coronavirus environment.
On 12/31/19 the IRS published the reference amounts for mileage rates for 2020. Their announcement:
Breaking news today suggests the so-called parking lot tax, which creates a tax liability for charities in certain circumstances for the cost of parking provided to employees, might be repealed shortly.
Went browsing around the web last night and found the settlement agreement for the AG’s case against the Giving Children Hope charity. Yesterday’s post discussed that case at length.
The National Association of State Charity Officials has a reprint of the California AG’s press release.
Included in the article is a link to the signed Assurance of Voluntary Compliance., which was approved by a judge on January 22, 2019.
Following are a few of the highlights from the signed agreement. In particular, the agreement fills in some of the details I was wondering about.
Remember my previous comment that I could see no reason one particular board member was included in the case? He was chair of the board from 2014 through 2016, according to paragraph 2. On the settlement agreement, he signed as chairman on behalf of the charity which agreed to dissolve itself.
The CPA cited in the case provided accounting services to GCH from January 2014 through June 2017 (para 2).
In paragraph 10a the AG asserts GCH had at least 25 transactions in which it had one of two controlled subsidiaries purchase medicine from a named wholesaler in the Netherlands for a “very minimal price” and then had the controlled charities donate the meds back to GCH.
The IRS has published the 2019 standard mileage rates. New rate for transportation and reimbursements is 58 cents, which is up from 54.5 cents in 2018. That is an increase of 3.5 cents.
New rates from the IRS, along with some comments on the impact of TCJA legislation are found in Notice 2019-02: (more…)
There are a few recent articles discussing enforcement action by the California Attorney General regarding the accounting for donated medicine used by three national charities. Looks like the issue is beginning to get a bit wider attention than this teeny tiny little ol’ blog.
Inflated Expectations / What’s going on with foreign affairs nonprofit Food for the Poor? from Slate on May 10, 2018, provides a non-technical description of the issues raised by the California AG.
Good explanation of medicine valuation, near-term expiry, joint cost allocation, principal market, access, and materiality issues without ever using those words. Even hints at daisy chain and SFAS 136 agency transactions.
Let me suggest a couple of exercises for accountants in the audience.
First, read through the article another time identifying all the accounting issues touched upon. Think about that as an illustration of how to describe technical accounting issues without being technical. (Yeah, I know, what a crazy idea – explaining stuff so people will understand.)
Second exercise is to read through the article thinking about how non-accountants would respond to each of those ideas if it was the first time they had heard about it.
How many of those GAAP accounting treatments would actually make sense?
How many would seem flat-out silly to people who haven’t spent years working with accounting rules?
Description of one shipment
There is a serious problem in the nonprofit community in terms of accounting for donated medicine. Three major enforcement actions by various regulators tell us that the regulators have serious reservations about how charities are dealing with gifts-in-kind.
Those of us working in the charity world need to ponder what could be making so many regulators so concerned.
50 Attorneys General
The rumors in the wind mentioned in my next post were discussed in 2012. That turned into a major enforcement action by the Federal Trade Commission and all 50 state Attorneys General against 4 cancer charities. (See my posts under the tag FTC.) That was in 2015.
I’m not aware of any followup by that group and I’ll guess the reason is the complexity of coordinating a 50+ member committee.
For the FTC and all 50 Attorneys General to all be on the same page on an issue should serve as a warning they believe there is a serious problem.
IRS