2007 Mileage Reimbursement Rates Published

November 2, 2006 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) yesterday in Revenue Procedure 2006-49 announced the standard mileage rates for 2007.

For business purposes, it will be 48.5 cents per mile, while for medical and moving purposes, it will be 20 cents per mile,  according to the IRS .  The new rate for business miles compares to a rate of 44.5 cents per mile for 2006, while the new rate for medical and moving purposes compares to 18 cents in 2006.

The primary reasons for the higher rates were higher prices for vehicles and fuel during the year ending in October.  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. Runzheimer International, an independent contractor, conducted the study for the IRS.  

You can read Revenue Procedure 2006-49 at   http://www.irs.gov/pub/irs-drop/rp-06-49.pdf