UnionMaine

Trust me, I work for the Government

I’m from the I.R.S. and I am here to help you, No really.


When the IRS raises the deductible for

mileage, you know things are bad.

I.R.S. says gas is getting expensive.

The Internal Revenue Service raises the mileage rate that can be claimed on your (business) taxes.

The I.R.S. is changing the rate used to calculate deductible operating costs for business vehicles from 50.5 cents a mile to 58.5 cents immediately and for the last six months of 2008.

“Rising gas prices are having a major impact on individual Americans,” said IRS Commissioner Doug Shulman. (Ya think?) “Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile.”

This is an indicator of the urgency of the action as the IRS usually updates the mileage rates only in the fall for the next calendar year.

Last week Sen. Norm Coleman, R-Minnesota sent a letter to Shulman urging him to increase the rate. Don’t give the R too much credit, remember, this will affect businesses not employees.

State Employees have been forced to drive their own vehicles for far less than the cost of maintenance and fuel for far too long. This has been ofter topped off with delayed expense reimbursement due to agencies that pay employees last. In 2007 a number of employees went six or more weeks without reimbursement while driving hundreds of miles a week.

P.S. The State of Maine is still at forty cents, which is ONLY 18.5 cents below what even the I.R.S. thinks is minimally needed to run a vehicle.

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June 23rd, 2008 Posted by narsbars | Uncategorized | 2 comments

2 Comments

  1. For any of your readers who want a simple way to track mileage expenses, you might want to check out http://paybackable.com – it automatically calculates mileage expenses using the current IRS rates. Just enter the date of travel, a brief description and the number of miles driven – Paybackable does the rest, even when rates change. There’s a free plan for individuals and a 30-days free trial for companies with multiple users. Perhaps the state of Maine would like to give it a try?

    Comment by kevin | June 24, 2008

  2. I will point out that Maine State Government is, and has been for a very long time, in the firm control of the Democratic party (due to the control of the governership, the senate and the house). While it’s convenient to blame the “R” in specific or general, keep in mind where the real reins of power are in the State of Maine. If you have a complaint regarding State fiscal policy, see above. At least at the federal executive level, specific action has been taken. Personally, I give the “R,” in specific and in general, credit on this issue.

    Comment by D. R. Bond | June 24, 2008

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