SECTION 1. PURPOSE

This revenue procedure updates Rev. Proc. 2006–49, 2006–47 I.R.B. 936, and provides optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing

the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This revenue procedure also provides rules under which the amount of ordinary and necessary expenses of local travel or transportation away from home that are paid or incurred by an employee are deemed substantiated under § 1.274–5 of the Income Tax Regulations if a payor (the employer, its agent, or a third party) provides a mileage allowance under a reimbursement or other expense allowance ar

2007–50 I.R.B. 1162 December 10, 2007

rangement to pay for the expenses. Use of a method of substantiation described in this revenue procedure is not mandatory and a taxpayer may use actual allowable expenses if the taxpayer maintains adequate records or other sufficient evi

dence for proper substantiation. The Internal Revenue Service prospectively adjusts the business and medical and moving standard mileage rates annually (to the extent warranted).

(1) Business (section 5 below) 50.5 cents per mile

(2) Charitable contribution (section 7 below) 14 cents per mile

(3) Medical and moving (section 7 below) 19 cents per mile