The Internal Revenue Service has announced that the 2012 optional standard mileage rate for employees will remain at 55.5 cents per mile. The rate is unchanged from the mid-year adjustment that took effect on July 1, 2011.
Employers who use the standard mileage rate to reimburse employees may deduct the reimbursement as a business expense. The rate is based on an annual study of the fixed and variable costs of operating an automobile.
Also for 2012, the standard mileage rate for miles driven for medical or moving purposes will be 23 cents, down slightly by .5 cents, and the rate for miles driven in service of charitable organizations will remain unchanged at 14 cents.
For more information on mileage rate, see Revenue Procedure 2010-51.