IRS Adjusts Mileage Rate for 2009 Due to Falling Gas Prices
Motorists aren’t the only ones who have taken notice of the falling gas prices, Big Brother has too. The Internal Revenue Service (IRS) announced last week that the mileage rate for business expenses in 2009 will be 55 cent per mile, down from the currently in place 58.5 cents per mile. The IRS raised the rate mid-year after gas prices began spiraling upwards.
The rate in 2003 was 36 cents per mile when gas was selling in the $1.50 – $1.70 per gallon range. Many states are currently in that range right now, so a rate of 55 cents should be well received by the nation’s commuters if gas prices can hold near the current levels throughout the upcoming year.
The IRS mileage rate does not only affect the tax rate. Many corporations, small businesses and government entities consider it as the standard and use it as a means of reimbursement for employees.