By Dan J. Thomas
Dan J. Thomas of Dan J. Thomas Business Services, LLC/Jackson Hewitt Tax Service calls the attention of businesses to this change for the last half of 2022. On June 9th the IRS announced this change, stating,
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
While this may not have an impact to non-profits, other small to medium size businesses definitely should take note of the change and how it may impact their business.
Per the IRS announcement,” For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates became effective July 1, 2022.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.”
For information on the effect to your particular situation contact Dan J. Thomas at 828-247-0171.