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IRS Increases Mileage Rate to 55.5 Cents per Mile!!

The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will be given to taxpayers starting July 1, 2011 until the end of the year. This is an increase of 4.5 cents from the 51 cent rate that took effect the first six months of 2011.

Due to recent increased gasoline price, the IRS made this special adjustment. Normally, the IRS updates the mileage rates once a year. "This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices" said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

The mileage rate will also increase for medical and moving expense purposes. Starting July 1, 2011 the mileage rate will be increased to 23.5 cents. This is also an increase of 4.5 cents from the 19 cents a mile from the first six months. However, the rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Have a wonderful and safe 4th of July!