In case you hadn’t heard yet, the IRS has raised the mileage deduction limit for business travel to 48.5 cents per mile, but not without debate…
From BizJournals
Rising gasoline prices led the Internal Revenue Service to increase the business mileage reimbursement rate to 48.5 cents a mile for the final four months of the year.
IRS Commissioner Mark Everson says the 8-cent increase “is about fairness to taxpayers. People are entitled to deduct the real cost of operating a vehicle.”
Some members of Congress think the rate should be even higher. Sen. Charles Schumer, D-N.Y., introduced legislation to raise the rate to 60 cents a mile through the end of 2006.
This increase is only good for August 1st through the end of the year when it will be re-evaluated, complicating everyone’s tax preparation and adding to the cost of tax code compliance for everyone from home businesses to giant corporations.
Another argument for Tax Simplification
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