Mid-year increase to standard mileage rate

Due to recent increases in the price of fuel, the IRS has announced an increase in the optional standard mileage rates for the final six months of 2011.

The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both to an employee on or after July 1, 2011, and for transportation expenses paid or incurred by the employee on or after July 1, 2011.

The rate for all business miles driven from July 1, 2011, through December 31, 2011 will increase to 55.5 cents a mile, an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011

Deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile for the last six months of 2011, up from 19 cents for the first six months of 2011.

However, the rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.