Alert! The Internal Revenue Service has announced an increase in the optional standard mileage rate for the remainder of 2022. Optional standard mileage rates are used to assess the deductible costs of using a car for business and certain other activities.

 

For the remaining duration of 2022, effective July 1, the normal mileage rate for business travel will be 62.5 cents per mile (currently 58.5 cents per mile), and the new rate for deductible medical or moving expenditures (accessible to active-duty military members) will be 22 cents (currently 18 cents). Since the start of the year, both rates have seen a 4-cent increase.

 

According to IRS Commissioner Chuck Rettig, “the IRS is changing the regular mileage rates to better reflect the recent increase in fuel prices.” “We are aware that a variety of exceptional issues relating to gasoline costs have come into play, and we are taking this extraordinary action to assist taxpayers, businesses, and others that utilize this rate.”

 

Whalen exhaustively works to stay up-to-date and knowledgeable about current and future changes for the betterment of all clientele and friends. If you would like to learn more about the rate increase or discuss how it will affect you, Whalen is here to help.

 

For legal guidance on the new rates or to read more, check out the IRS Announcement 2022-13.

 

• Category: Client Alerts