There was a mid-year business mileage rate increase in 2005 and another one in 2008 after gas prices shot up. Will it happen again with prices flirting with the $4 mark?
It’s not likely to happen this year, according to Ligeia Donis, spokesperson from the IRS Office of Chief Counsel.
Donis recently spoke to payroll industry representatives and said businesses should not expect an increase in the standard mileage deduction/reimbursement rate this summer, according to a report on AccountingWeb.com.
Reasons:
- Gas prices could decline, as there has been some evidence of recently, and
- It could present unwanted logistical challenges for businesses.
So more than likely that means you won’t be able to offer employees more financial relief than 51 cents for every business mile driven — unless you want to tax them on it.
The other rates are currently 19 cents for medical or moving mileage and 14 cents for mileage at charitable organizations.
