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December 9, 2004 | Read Time: 1 minute

People who use their cars in their volunteer work for charities continue to fare poorly in the federal tax code compared with those who use their automobiles for business purposes. Under the law, volunteers may deduct 14 cents a mile for their car costs (or be reimbursed by a charity at that rate without the payment being subject to income tax). Last month, the IRS announced that the rate for the business use of a car will climb from 37.5 cents a mile this year to 40.5 cents a mile beginning January 1. The law allows the government to adjust the business rate — but not the charitable rate — for inflation.
The IRS has proposed new regulations for 403(b) retirement plans that, the Treasury Department says, represent the “first comprehensive guidance” for the arrangements in 40 years. Such plans, which are named after the section of the federal tax code that describes them, allow charity employees to save before-tax earnings through payroll deductions. The government guidance is aimed in part at helping charities understand changes in federal law over the years. The regulations were published in the November 16 edition of the Federal Register and can be found online at http://www.gpoaccess.gov/fr/index.html.