Davis Says IRS Increases Mileage Reimbursement for Small Businesses and Moving PurposesJune 24, 2008

WASHINGTON, D.C. If you operate an automobile for your small business or plan on moving soon you will be happy to learn the Internal Revenue Service has increased the optional standard mileage rate for the final six months of 2008 said Congressman Lincoln Davis, in an effort to get word out to his constituents.

"I applaud the IRS for stepping up and increasing the optional standard mileage for Tennessee businesses and taxpayers at a time of increasing fuel prices," said Congressman Davis. "Such increases are usually made during the fall season and these additional months will no doubt help save some money."

Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, and moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight cents from 50.5 cents. The new six-month rate for computing deductible moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents per mile.