It's time for an increase in the standard mileage rate
Certain members of Congress have taken it upon themselves to encourage the IRS to make a mid-year adjustment in the standard mileage rate used for deductions and reimbursements. This wouldn't be the first time the IRS stepped up and lowered the rate when prices at the pump escalated. With gas prices hovering around $4.00 per gallon, it would seem reasonable to assume that the IRS will make a mileage rate adjustment this summer. I can remember two such increases in the past decade. But so far, the IRS is not acquiescing.
Last week an agency representative gave a thumbs down to the idea of an increase. Does this mean the IRS knows something we don't know about where gas prices are going? Or is it truly just too much of a "logistical challenge" to change the rate, as the IRS representative stated? From a gas-using taxpayer perspective, the mid-year rate change seemed fairly unchallenging and certainly very welcome in the past. The last time gas prices were this high, the IRS changed the mileage rate to 58.5 cents per gallon. It's time to recognize that the higher gas prices are likely to stick around for awhile, and that the mileage rate should reflect this.
Gail Perry, editor-in-chief
Prior to this role, Caleb served as the editor of Going Concern since its founding in 2009. During his time as editor, Going Concern quickly became one of the most popular and talked about websites in the accounting profession. He has been named one of Accounting Today's Top 100 Most Influential People every year since 2011 and has been published on numerous websites, including Above the Law, Deadspin, Denver Business Journal, and the Huffington Post.
Caleb is an adjunct professor of journalism the Community College of Denver in Denver, Colorado, where he teaches Internet Media.
Prior to falling bass ackwards into the media business, Caleb spent over five years working in public accounting, with more than three of those years at KPMG. Caleb received a Master of Science in Accounting from Colorado State University and a Bachelor of Science in Business Administration from the University of Nebraska at Kearney.
Caleb spends a lot of time on a bicycle and reading, but never at the same time.