IRS and the mileage rate increase
by AccountingWEB on
The last time we saw a steep increase in gas prices at the pump, the IRS helped ease the pain with an increase in the allowable standard mileage deduction/reimbursement rates. There was a mid-year mileage rate adjustment in 2005, and another one in 2008 when the business mileage rate was increased to a record 58.5 cents per mile.
Last week, Representative Jim Sensenbrenner (R-WI), along with eight other house Republicans and three Democrats, sent a letter to IRS Commissioner Douglas Shulman asking the agency to consider increasing the mileage rates for the rest of 2011. Specific rate increase recommendations were not mentioned in the letter.
Meanwhile, IRS spokesman Ligeia Donis, assistant branch chief at the IRS Office of Chief Counsel, spoke with payroll industry representatives in a conference call last week, and explained why, in spite of spiking gas prices, we should not expect an increase in the standard mileage rate this summer.
Donis told those who attended the conference call, “Changing the rate in middle of the year could present logistical challenges, and if the price of gas dropped, there would be more complications.”
The current mileage rates are:
- 51 cents per mile for business miles
- 19 cents per mile for medical or moving purposes, and
- 14 cents per mile for charitable organizations.
You may like these other stories...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...
With tomorrow being Tax Day, you might see some procrastinators at your office filling out forms, printing out paperwork, or getting last-minute tax advice from their accountant so they can meet the IRS’s filing...
The IRS has launched 295 new identity theft and refund fraud investigations during this tax-filing season, bringing the number of active cases to nearly 1,900, the agency announced last week.The coast-to-coast enforcement...
Upcoming CPE Webinars
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.