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Rules of the Road

What you need to know about driving expenses for 2010.

Each year the IRS announces a new "standard business mileage rate" that can be used by taxpayers to compute a deduction for the business use of a vehicle, and for employers to reimburse workers' substantiated business miles under an accountable expense reimbursement arrangement. For 2010, the IRS set the standard business mileage rate at 50 cents per mile (down from 55 cents in 2009).

Reimbursing business miles using the standard mileage rate. Many churches have adopted an accountable reimbursement arrangement that uses a mileage rate to reimburse business miles driven by employees. Some churches use the IRS approved rate, while others use a rate that is either more than or less than the IRS rate. Listed below is a summary of the rules that apply to a church's use of a mileage rate to reimburse employees' business miles.

(1) employees substantiate business miles with adequate records at least ...

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