[Congressional Record Volume 145, Number 82 (Thursday, June 10, 1999)]
[Senate]
[Page S6864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MURKOWSKI:
  S. 1208. A bill to amend the Internal Revenue Code of 1986 to provide 
that reimbursements for costs of using passenger automobiles for 
charitable and other organizations are excluded from gross income; to 
the Committee on Finance.


                           CHARITABLE MILEAGE

  Mr. MURKOWSKI. Mr. President, I rise to introduce modest legislation 
that will eliminate controversy between the IRS and people who use 
their automobiles to perform charitable work.
  Two years, ago I was successful in convincing my colleagues that the 
standard mileage rate for charitable activities should be raised to 14 
cents a mile. I would have preferred that the mileage rate would have 
been set higher, but at least this was a step in the right direction.
  It has recently come to my attention that if a charity reimburses a 
volunteer at a rate higher than 14 cents a mile, the volunteer must 
include such higher reimbursement in income. Thus, for example, if a 
person uses his car for a voluntary food delivery program or for 
patient transportation and the charity reimburses the volunteer 25 
cents a mile, the individual would have 11 cents of income. That is 
absurd, Mr. President, especially when one considers that if a person 
was performing the same service as an employee of a company, the person 
could be reimbursed tax-free at the rate of 31 cents a mile.
  I understand that there have been cases where volunteer drivers have 
been audited and subjected to back taxes, penalties, and interest 
because of unreported volunteer mileage reimbursement, even though that 
reimbursement did not exceed the allowable business rate and the dollar 
amounts were quite small. Does IRS have nothing better to do than audit 
such individuals?
  My bill would eliminate this problem. It provides that all charitable 
volunteer mileage reimbursement is non-taxable income to the extent 
that it does not exceed the standard business mileage rate and 
appropriate records are kept. It is important to note that my bill does 
not increase the allowable deduction claimed by volunteers who are not 
reimbursed by a charity.
  I ask unanimous consent that the text of my bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1208

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by redesignating 
     section 139 as section 140 and by inserting after section 138 
     the following new section:

     ``SEC. 139. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.

       ``(a) In General.--Gross income of an individual does not 
     include amounts received, from an organization described in 
     section 170(c), as reimbursement of operating expenses with 
     respect to use of a passenger automobile for the benefit of 
     such organization. The preceding sentence shall apply only to 
     the extent that such reimbursement would be deductible under 
     this chapter if section 274(d) were applied--
       ``(1) by using the standard business mileage rate 
     established under such section, and
       ``(2) as if the individual were an employee of an 
     organization not described in section 170(c).
       ``(b) No Double Benefit.--Subsection (a) shall not apply 
     with respect to any expenses if the individual claims a 
     deduction or credit for such expenses under any other 
     provision of this title.
       ``(c) Exemption From Reporting Requirements.--Section 6041 
     shall not apply with respect to reimbursements excluded from 
     income under subsection (a).''
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 139 and inserting the 
     following new items:

``Sec. 139. Reimbursement for use of passenger automobile for charity.
``Sec. 140. Cross reference to other Acts.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
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