Starting Jan. 1, 2001, the standard mileage rate for the cost of using a vehicle for business purposes is 34.5 cents a mile, up from 32.5 cents a mile in 2000, the IRS said. The standard mileage rate for operating an automobile for medical reasons or deductible moving expenses has jumped up to 12 cents a mile, compared to 10 cents a mile.

The standard mileage rate for using a car when giving services to a charitable organization remains at 14 cents a mile, the IRS stated.

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. An independent contractor conducted the study on behalf of the IRS. The charitable standard mileage rate is provided by law.

In other news, the IRS said that Form 8872, "Political Organization Report of Contributions and Expenditures," can be filed online by section 527 political organizations.

The form is available at www.irs.gov/polorgs.

The e-filing news arrives on the heels of a new law, signed July 1, that requires most 527 groups to publicly disclose details about their organization, contributors, expenditures and other information.

The electronic filing of Form 8872 represents the first totally Web-based filing option being offered by the IRS, the Service said. Political organizations will be able to enter information online for the Form 8872. They can save the information, review it and confirm it prior to submitting the information online.

Organizations that filed Form 8871, "Political Organization Notice of Status," both electronically and in writing, should soon be receiving a letter with the user ID and password needed to file Form 8872 electronically. Organizations that do not receive their user ID and password may request one by writing to: Internal Revenue Service, Room 4010, P.O. Box 2508, Cincinnati, OH, 45201.

-- SmartPros News Staff

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