The Internal Revenue Service delayed for three months until April 1
the effective date of a new allowance of 31 cents per mile that
employers can deduct as a business expense when employees drive
their own cars for business purposes.
The allowance, which also affects self-employed persons, had
been scheduled to drop on Jan. 1 from the current rate of 32.5
cents per mile. The IRS agreed to the delay because it wanted to
accommodate businesses that needed more time to change their
systems, a spokeswoman said.
The current mileage allowance of 32.5 cents will remain in
effect for expenses paid or incurred through March 31. Beginning
April 1, the new rate of 31 cents will kick in.
The IRS rate is the maximum amount that is tax-deductible; some
companies reimburse their employees at a lower rate for driving
their own cars for business.