IRS Announces New 2011 Mileage Rates
Two weeks ago, a press release went out announcing the Internal Revenue Service's decision to increase the standard mileage rates for the remainder of 2011 for operating a vehicle for business purposes. The reason for this? A response to the rising cost in gas.
As a payroll service bureau in tune with any and all industry-related news and dedicated to providing businesses with payroll-related expertise, we felt it extremely pertinent to share some of the highlights from press release with you.
The New IRS Mileage Rate Was Motivated By Rising Fuel Costs.
The core of the press release is about the mileage rate increases for the remainder of 2011. For businesses, the mileage increase raised from 51 cents to 55.5 cents on July 1 (just last week). This new information is crucial for calculating deductable costs come next tax season.
In the press release, the IRS Commissioner Doug Shulman had this to say:
"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."
Click here to read the IRS's original Announcement 2011-40 document.
Look Below To View The 2011 Mileage Rate Increases:
The mileage rate changes affect three areas: businesses, medical/moving, and charitable. For your convenience, we have provided a breakdown of the mileage rate changes from the IRS document. As previously mentioned, the numbers represent cents.
§ Business: (1/1 through 6/30/11) 51 cents, (7/1 through 12/31/11) 55.5 cents
§ Medical/Moving: (1/1 through 6/30/11) 19 cents, (7/1 through 12/31/11) 23.5 cents
§ Charitable: (1/1 through 6/30/11) 14 cents, (7/1 through 12/31/11) 14 cents
Executive Summary: Even in these tough economic times, businesses and government agencies alike are pulling together in an effort to better American lives. For businesses, it is simply a matter of being aware of these benefits come tax time to file for the appropriate deductions and save as much on your business' travel expenses as possible. That's where a payroll service like us comes along. Our knowledge, expertise and dedication are what led us to share this news with you. Now let us handle the payroll and tax heavy lifting so you can focus on what matters most -- growing your business.