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IRS Mileage Records Defined 

IRS mileage records are detailed logs of business mileage that are tracked according to IRS guidelines. For many vehicle reimbursement programs, such as Fixed and Variable Rate (FAVR) programs and Cents per Mile programs, tracking business mileage is an essential part of being compliant. A detailed mileage log helps to justify business mileage to the IRS. When mileage is properly tracked and other IRS guidelines are followed, it offers the possibility of tax-free reimbursements — offering a substantial benefit both to employers and employees.

The IRS has outlined the information that must be tracked for mileage records to be compliant in publications like IRS Publication 463. This includes data such as the purpose of the trip, destination, date and time, total mileage, and more details. When driving a personal vehicle for work, it’s essential to separate business mileage from personal mileage, as only business mileage is eligible for tax-free reimbursement. It’s also important to be aware of the commute rule, which states that miles driven commuting from a home residence to a workplace are not considered to be business mileage. 

Business mileage can be tracked using paper logs, a spreadsheet, or a mileage tracking app. With apps — such as that offered by Cardata — mileage can be automatically recorded through software. This option can help to ensure compliance with IRS guidelines, promote accuracy, and save employee drivers time. 
To learn more, read about how mileage tracking works. If you’re an employee or an employer looking to find out more about reimbursement under FAVR programs, explore this guide to FAVR. If you’re curious to find out more specific information about whether FAVR would be a good fit for your business and options for simplifying mileage tracking, consider booking a call with a Cardata expert.

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