IRS Increases Mileage Rate Until Dec. 31, 2005
Last month, the IRS announced an increase to the optional standard mileage rates for the final four months of 2005.
The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight months of 2005.
This is about fairness for taxpayers,” said IRS Commissioner Mark W. Everson. “People are entitled to deduct the real cost of operating a vehicle.”
The IRS made this special adjustment for the final months of 2005 in recognition of recent gasoline price increases. Typically, updates the mileage rates once a year in the fall for the next calendar year.