IRS Mileage Rate Increase in 2007. Like Money in Your Pocket
Road warriors will be happy to hear that the IRS is raising the standard mileage deduction rate, beginning in January of 2007. The IRS announced yesterday as of January 1 the standard mileage rate will rise from 44.5 to 48.5 cents per mile.
According to the IRS website, “The primary reasons for the higher rates were higher prices for vehicles and fuel during the year ending in October.”
Of-course this applies to miles deductions, but many employers use this figure as a guide for mileage reimbursement. You may want to be sure your company is aware of the changes, although any self-respecting accounting staff should already know.
This announcement comes two weeks after the IRS announced the new Per Diem rates set for 2007.