The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through December 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51 (see Business Mileage Rate up One Cent for 2011).
The agency said it made this special adjustment in recognition of recent gasoline price increases. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. The agency also made an adjustment to the rates in 2008 after gas prices soared (see IRS Increases Mileage Rates).
The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.The new rates are contained in Announcement 2011-40.