IRS reminders
By Shannon Kellen | January 12, 2024 | All members
2024 standard mileage rates
The following press release was issued by the IRS on December 14, 2023:
Beginning on January 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 67 cents per mile driven for business use, up 1.5 cents from 2023
- 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023
- 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023
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.
Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.
Notice 2024-08 contains the optional 2024 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2024 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.
“General Instructions for Certain Information Returns” (2023) including Form 1099
For the following information and more, go to:
https://www.irs.gov/pub/irs-pdf/i1099gi.pdf.
What’s new
- Information Reporting Intake System (IRIS). The IRS has developed IRIS, an online portal that allows taxpayers to electronically file (e-file) information returns after December 31, 2022, for 2022 and later tax years. See part F or go to IRS.gov/IRIS for additional information and updates.
- E-filing returns. The Taxpayer First Act of 2019, enacted July 1, 2019, authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250-return requirement for 2023 tax returns. However, the e-file threshold for returns required to be filed in 2023 remains at 250. The e-file threshold of 10 is effective for returns required to be filed on or after January 1, 2024.
- Form 1098-F box 9. In box 9, enter one of the codes listed only if applicable.
- Form 1099-K reporting transition period. The transition period described in Notice 2023-10 delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022. The transition period is intended to facilitate an orderly transition for third-party settlement organization (TPSO) tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a TPSO for a business transaction.
- Continuous use conversion. Form 1099-PATR and its instructions have been converted from annual updates to continuous use. The form and its instructions will be updated as needed. Future Developments For the latest information about developments related to the General Instructions for Certain Information Returns after they were published, go to General Instructions for Certain Information Returns at IRS.gov/ 1099GeneralInstructions.
Future developments
For the latest information about developments related to the “General Instructions for Certain Information Returns” after they were published, go to the “
General Instructions for Certain Information Returns” page on the
IRS website. All this information and more can be found on the IRS website.
Shannon Kellen | Director of Accounting |
skellen@careproviders.org | 952-851-2493