[CAFR-Contacts-News] FW: New D10 - 4102 Instate Mile Reimb-Excess Volunteer Rate

[HAMILTON Robert W * DAS]

Hello CAFR Contacts,

We recently received a formal opinion from DOJ regarding any potential taxability of mileage reimbursements paid to volunteers.  That opinion stated that a volunteer may receive up to the business mileage rate amount ($0.56 per mile in 2014 and $0.575 per mile in 2015) as long as they are reimbursed under an accountable plan, without any tax consequence.  Therefore, volunteers may continue to receive the higher business mileage rate, rather than the charitable volunteer rate of $0.14 per mile, if the reimbursement is made under an accountable plan, as I believe they all are (paragraph 111 of the Statewide Travel Policy goes into the concept of an accountable plan). As a result, comptroller object 4102 should no longer be necessary.  I used Hyperion to run a query and five agencies had used that comptroller object for FY 2015, and SFMS has already reached out to them as part of the 1099 process.  Once the amounts are reclassified to other comptroller objects, such as 4111 or 4164, we'll work with SFMS to inactivate comptroller object 4102.

If you have any questions, please don't hesitate to contact me or your SARS analyst.

Thank you,

Rob

From: CAFR-Contacts-News [mailto:cafr-contacts-news-bounces at listsmart.osl.state.or.us] On Behalf Of HAMILTON Robert W * DAS
Sent: Thursday, September 18, 2014 9:37 AM
To: cafr-contacts-news at listsmart.osl.state.or.us
Subject: [CAFR-Contacts-News] New D10 - 4102 Instate Mile Reimb-Excess Volunteer Rate

Good Morning CAFR Contacts,

A new D10 comptroller object, 4102 - "Instate Mile Reimb-Excess Volunteer Rate" has been established.  This D10 has been established so that agencies who choose to reimburse volunteers at a mileage rate that exceeds the IRS volunteer mileage rate of $0.14/mile, are able to accurately report the activity.  Please be aware that reimbursements in excess of the IRS rate are considered taxable income to the volunteer and subject to 1099 reporting requirements.

Any questions, please contact your SARS analyst.

Thank you,

Rob

Robert W. Hamilton, CPA
Statewide Accounting and Reporting Services Manager
Chief Financial Office
Department of Administrative Services
Phone:  (503) 373-0299
http://oregon.gov/DAS/CFO/SARS<http://oregon.gov/DAS/SCD/SARS>

Data Classification: Level 1 - Published

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