Payroll Articles

IRS Increases Mileage Rates From July 1 Through December 31, 2008.

The IRS has announced an increase in the optional standard mileage rates for the final six months of 2008 [IR-2008-82, 6-23-08; www.irs.gov/newsroom/article/0,,id=184163,00.html]. Citing “recent gasoline price increases,” the IRS has increased the standard business mileage rate from 50.5 cents to 58.5 cents a mile for all business miles driven between July 1 and December 31, 2008.

The rate for deductible medical or moving expenses is increased from 19 cents to 27 cents a mile. Note: The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.