WATERFORD, Wis., Dec. 18, 2015 /PRNewswire/ -- Using data from Runzheimer, a business vehicle program, relocation information services and expense management solutions provider, the Internal Revenue Service (IRS) has announced the new national, optional business mileage deduction rate of 54 cents for U.S. business drivers, effective January 1, 2016.
The IRS has used Runzheimer vehicle cost data to help calculate its mileage deduction rate since 1980, referencing a broad array of fixed and variable factors, including vehicle depreciation, auto insurance premiums and maintenance rates. Runzheimer also provides similar benchmarking information to private organizations, as well as technology and consulting services around business vehicle reimbursement, expense management and relocation.
The 2016 rate reflects a 3.5 cent decrease from the current rate of 57.5 cents-per-mile, which went into effect January 1, 2015. This is just the sixth time it has fallen more than half of a cent year over year in the last 25 years. The IRS also calculates standard rates for driving for other work-related purposes, such as moving. That standard rate for relocation-related mileage is 19 cents-per-mile.
"Falling oil and gas prices certainly play a role in calculating the IRS reimbursement rate, but there is a lot more contributing to the full picture," said Heidi Skatrud, SVP of Operations and Product Management at Runzheimer. "By extensively researching the factors and conditions impacting the modern business driver, our goal is to give the IRS and other businesses an informed perspective to help them make evidence-supported decisions."
The new standard mileage rate is the amount a U.S. taxpayer and companies are able to deduct on a 2016 tax return for recorded business miles in a personal vehicle.
Founded in 1933, Runzheimer connects people, companies and their vehicles in ways that drive superior productivity and impactful business intelligence. We provide expertise, technology and world class customer service that empowers companies to move their businesses forward with confidence. As a result, our customers are able to better manage cost, reduce business risk and increase employee satisfaction in the mobile workplace. Runzheimer is the leader in workforce mobility programs, designing and delivering business vehicle programs, relocation information services and business expense solutions. We are highly renowned and recognized for our market leading service delivery focus, an integral part of our corporate culture.