IRS has issued Notice 2023-03 in which it provides the new adjusted amounts taxpayers may use in computing certain costs of operating an automobile for business, charitable, medical, or moving expense purposes. There is nothing groundbreaking in the announced rates, which include 65.5 cents per mile for all miles of business use. However, employers who have chosen to provide travel benefits for abortion and abortion-related services in the wake of last year’s Supreme Court decision overturning Roe v. Wade should be aware that reimbursement for travel expenses related to receiving such care as covered under Code Section 213(d) cannot exceed certain IRS limits, including the newly announced limit on mileage reimbursement for medical travel. Thus, any medical travel reimbursement benefit that reimburses for mileage must cap that reimbursement at 22 cents per mile for expenses paid or incurred on or after January 1, 2023.
This information has been prepared for UBA by Fisher & Phillips LLP. It is general information and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
