Compliance June 24, 2008

IRS Increases Mileage Rates

June 24, 2008 (PLANSPONSOR.com) - The Internal Revenue Service has bumped up optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated.
Reported by

In announcement 2008-63 , the IRS said Revenue Procedure 2007-70, issued in November 2007, is modified to establish a standard mileage rate of 58.5 cents per mile, up from 50.5 cents per mile (See IRS Puts Out 2008 Mileage Expense Allowance ). The standard mileage rate for medical or moving purposes is 27 cents per mile, up from 19 cents per mile.

According to the announcement, the modification results from recent increases in the price of fuel. Mileage rates are typically updated once per year.

The revised standard mileage rates apply to expenses incurred on or after July 1, 2008.

UPDATEhe General Services Administration (GSA) followed the Internal Revenue Service announcement by raising the mileage reimbursement rate for government employees using their personal vehicles on the job to 58.5 cents per mile from 50.5 cents/mile.      

Those reimbursement rates are online  HERE

«