The IRS, taking pity on drivers fueling up at increasingly costly pumps, has upped the mileage reimbursement rate to 55.5 cents per mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of
4.5 cents from the 51 cent rate in effect for the first six months of
2011.
“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,” says IRS
Commissioner Doug Shulman. “We are taking this step so the reimbursement
rate will be fair to taxpayers.”
While gasoline is a significant factor in the mileage figure, other
items enter into the calculation of mileage rates, such as depreciation
and insurance and other fixed and variable costs.