IRS ups mileage reimbursement rate to 58.5 cents on July 1

Due to rapidly escalating gas prices, the Internal Revenue Service has announced an increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight cents from the 50.5-cent rate in effect for the first six months of 2008.  Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," says IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."