The IRS standard mileage rates for 2012 were announced on December 9, 2011. The business mileage allowance is for 2012 is 55.5 cents per mile, which continues the rate in effect since July 1, 2011 (the rate for milage for the first 6 months of 2011 was 51 cents).
There is an IRS mileage allowance rate for business, charitable, and medical or moving purposes to calculate the deductible costs of operating a vehicle for those purposes. The federal mileage rate for medical or moving purposes is $0.23 per mile driven. Miles driven in service of charitable organizations may be claimed at the mileage allowance rate of $0.14 per mile.
This rate for mileage reimbursement is typically adjusted just once a year. The IRS uses a contractor, Runzheimer International, to compute the cost of operating an automobile for business use and then derives the business mileage rate. This standard mileage allowance can be used to compute the deductible costs of vehicle business use in lieu of deducting actual costs. Often this rate is used by businesses as a benchmark to determine how they will reimburse their employees for miles driven using their personal vehicles. Many businesses adopt this rate for mileage reimbursement.
You can find more detailed information at http://irs.gov.
People who need the IRS milage rate to compute deductions for business mileage driven often include salespeople and couriers. The IRS notes that a taxpayer may not use the business standard mileage rate if they use any depreciation method included in the Modified Accelerated Cost Recovery System (MACRS) or if they claim a section 179 deduction for that vehicle. Please consult your CPA or tax advisor to get specific guidance on applying the 2012 IRS mileage rate for your situation.