IRS Raises Reimbursement Rate to 48.5 Cents for Business Mileage
IRS announces that the optional standard mileage rates for the final four months of 2005 will be 48.5 cents. The rate will increase 8 cents a mile for all business miles driven between Sept. 1 and Dec. 31--up from the 40.5 cent rate in effect for the first eight months of 2005, says IRS Commissioner Everson. "This is about fairness for taxpayers," he says. "People are entitled to deduct the real cost of operating a vehicle."