Wednesday, August 13, 2008

Mileage Reimbursement Increase

IRS Announces Increased Standard Mileage Rates Effective July 1, 2008

In response to increased fuel costs, on June 23, 2008, the IRS announced that it is increasing the optional standard mileage rates used for computing deductible automobile costs for business and other purposes, including moving.The announcement took affect on July 1, 2008, with the new rates being 58.5 cents per mile for business use (up from 50.5 cents) and 27 cents per mile for moving expenses (up from 19 cents). The IRS ordinarily adjusts the mileage rates once per year, but opted to do so in mid-year because the costs of fuel have escalated dramatically in recent months.