Gas Prices are Forcing Mileage Rates to Increase
IRS announces rare mid-year rate hike
The Internal Revenue Service (IRS) recently announced that it will increase the standard mileage rate for qualified business driving for the second half of 2022. The adjustment reflects the soaring cost of gasoline this year. In fact, as of June 22, the nationwide average price of regular unleaded gas was $4.95 a gallon, according to the AAA Gas Prices website. This is compared with $3.07 a gallon a year ago.
Beginning July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the 58.5 cents-per-mile rate effective for the first six months of the year. The IRS also announced an increased standard mileage rate for medical driving and moving for members of the military.
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Charles Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
Please select this link to read the complete article from OSAP Member VonLehman CPA & Advisory Firm.