IRS Mileage Records

IRS mileage records are detailed logs of business driving that employees must maintain to qualify for tax-free mileage reimbursement.

These records are required for programs like Fixed and Variable Rate (FAVR) and Cents-Per-Mile (CPM), where reimbursement is based on accurately tracking business mileage. Proper documentation helps show that trips are work-related and eligible under IRS rules.

To be compliant, mileage records typically need to include:

• Date and time of each trip
• Starting location and destination
• Business purpose of the trip
• Total miles driven

It’s also important to clearly separate business mileage from personal mileage, including commuting, which is not eligible for tax-free reimbursement.

Mileage can be tracked in a few different ways, including paper logs, spreadsheets, or digital tracking tools. In practice, consistency matters just as much as accuracy. Well-maintained records help ensure reimbursements remain compliant, defensible, and tax-free.