&amp;amp;amp;amp;amp;amp;lt;!–:en–&amp;amp;amp;amp;amp;amp;gt;STANDARD MILEAGE RATE INCREASED BY IRS&amp;amp;amp;amp;amp;amp;lt;!–:–&amp;amp;amp;amp;amp;amp;gt;June 25, 2011
Higher gas prices have prompted the Internal Revenue Service to announce a midyear hike in the standard mileage rate employers can use to reimburse employees who drive their owned or leased automobiles for business purposes. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. 06-23-2011; IRS.gov.
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