Technical Guidance
Revenue Ruling-2004-1 describes the income and employment tax treatment of a mileage allowance paid by a courier company to its employee drivers.

Further information:
www.irs.gov/pub/irs-drop/rr-04-1.pdf
...back to 22 January 2004

Standard Mileage Rates for 2004
The IRS has released the optional standard mileage rates that will apply from January 1, 2004. The rates may be used to compute the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

In addition, taxpayers who use no more than four vehicles at the same time for business purposes may use the standard mileage rate, starting in 2004. Currently, those using more than one vehicle at a time cannot use the standard rate at all, leaving them to track the actual expenses for each vehicle.

Beginning January 1, 2004, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:

• 37.5 cents a mile for all business miles driven, up from 36 cents a mile in 2003
• 14 cents a mile when computing deductible medical or moving expenses, up from 12 cents a mile in 2003
• 14 cents a mile when giving services to a charitable organization.

Further information:
www.irs.gov/newsroom/article/0,,id=114320,00.html
...back to 31 October 2003