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If you use your car or truck for business purposes, you will most likely be able to deduct some of that expense on your taxes. However, it is critically important to fully understand the IRS mileage rate before claiming your deductions. This will save a great deal of time and hassle down the line if the IRS chooses to audit you or otherwise look more closely at your tax return.

The standard mileage rate is determined by a consultant hired by the IRS. It changes every year depending on fuel costs and other factors. In addition, it can vary depending on what type of work you do. Medical transport, relocation purposes and charitable work are major areas that use a different mileage rate. This is why it is especially important to learn the new rate every year. If you do not, you could face penalties and even fines for incorrectly filing your taxes.