Mission Statement:

When volunteers drive their own vehicle to carry out a task for the organization, the IRS permits them to deduct $.14 per mile. The business rate for mileage is $.31. Organizations that reimburse the volunteer at the higher rate can put the volunteer in a precarious tax position, according to Senator Frank Murkowski (AK-R). He reports that the IRS has been trying to collect taxes on the difference.

Some tax payers have been subjected to penalties and interest for mileage reimbursement for their volunteer miles. Murkowski has introduced S1208, a bill that would exclude from taxes any reimbursements made by nonprofit organizations that exceed the $.14 rate. The rate of reimbursement cannot, however exceed the business rate limit. The bill has been referred to the Committee on Finance and is part of the large Senate Tax Bill S1429.