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The United States Internal Revenue Service (IRS) has issued a
Notice conforming its 2018 guidance on the use of standard
mileage rates to the Tax Cuts and Jobs Act of 2018 (TCJA).
However, the new Notice implements other changes made by the
TCJA that affect deductions for automobile use.
The TCJA suspended the deductions for miscellaneous itemized
deductions, and moving expenses, through 2025. Previously, there was an
allowance for an itemized deduction of miscellaneous business expenses by individuals,
to the extent those expenses exceeded 2% of adjusted gross income.
Related: U.S. States Begin to React to Moving Expense Change
Worldwide ERC® members with business travelers who are
incurring unreimbursed travel costs, such as automobile use, will need to
determine whether to supplement tax assistance to take account of those costs
that are no longer deductible. Note that if a company does reimburse automobile
costs at the standard rate of 54.5 cents per mile, those reimbursements remain
They will also need to consider how to handle automobile use
by employees who are moving. Although many will still choose to use the 18
cents per mile rate for reimbursement, those costs are now taxable and subject