Department of Treasury

IRS Revises Mileage Reimbursement Rate for 2011

Tuesday, July 12th, 2011

In Announcement 2011-40, the Internal Revenue Service (IRS)  has revised the optional standard mileage rates for computing the deductible costs of operating an automobile for business purposes.  While gasoline costs are a major factor the IRS also considered depreciation and insurance and other fixed and variable costs when revising the rate from  $0.51 cents per mile to $0.55 cents per mile effective July 1, 2011. If your employee handbook follows the IRS optional standard mileage rates, please be sure to adjust your business mileage reimbursements.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Mileage Rate Changes

Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11
Business 51 55.5
Medical/Moving 19 23.5
Charitable 14 14

Auto Dealerships: Is Your Customer’s Information Really Secure?

Wednesday, June 22nd, 2011

Ever since the Federal Trade Commission (FTC) passed the Safeguards Rule, customer information security has been a hot topic over the past several years for auto dealerships.   The FTC mandates that auto dealerships have a formal, written, and revisable program specifying the steps taken to protect customer’s personal information and prevent unauthorized use of such information.  The three objectives needed in a Customer Information Security Program are:

  1. Secure and insure the confidentiality of customer information.
  2. Defend against anticipated threats to the security of our customer information.
  3. Shield against unauthorized access to, or use of, our customer information.

What are the liabilities an auto dealership faces if no Customer Information Security Program exists or it isn’t implemented and/or communicated fully throughout the organization?  A prominent auto dealership in Colorado learned the hard way, due to two fraud investigations within a few months regarding fraud and forgery of contracts. 

Without a defined Customer Information Security Program, no risk assessment was completed to protect the customers’ information.  It’s not just up to the dealership owner to be ethical, but all employees working for the dealership.   Had there been a specific program in place regarding 1) Employee Training; 2) Information processing, storage, transmission and disposal; and 3) Detection, prevention and reaction to an attack of information systems, this dealership might not be in the predicament they are in and have a permanent black mark on their Colorado Dealer Board record.

More information on the Safeguards Rule for auto dealerships can be found at http://www.niada.com/PDFs/Publications/Safeguards%20Rule.pdf.  HotlinkHR clients have access to a complete compliance program for Red Flags Rules and Customer Information Security included within their subscription.

2011 Mileage Reimbursement Rates Increasing

Wednesday, December 29th, 2010

The Treasury Department has increased the standard mileage reimbursement rates effective January 1, 2011 ( although only a one cent increase)  to 51 cents per mile for business miles driven. Additional increased mileage rates are as follows:

  • 19 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven for service of charitable organization

More information is availalbe at http://www.irs.gov/newsroom/article/0,,id=232017,00.html