The IRS Increases Mileage Rates
In response to continually increasing gas prices, the IRS announced on June 23rd that the optional standard mileage rate will see a 4.5 cent increase to 55.5 cents per mile for July through December 2011. A 4.5 cent increase is also in effect for medical and moving mileage, raising the rate from 19 cents to 23.5 cents a mile. If you use the standard mileage rates for recording automobile expenses or for employee reimbursements etc, please note this increase as of July 1st. Since charitable mileage rates are set by statute, they are not affected and remain at 14 cents per mile. Due to increased IRS scrutiny in the area of mileage reimbursements, it is imperative to keep a written log of all business miles driven with company and/or personal vehicles.
Updated mileage rates, in cents per mile:
|Purpose||Rates 1/1 through 6/30/11||Rates 7/1 through 12/31/11|
If you have any questions about how these rate increases will affect you, feel free to contact us at Wallace Neumann & Verville, LLP .