In response to increased fuel costs, on June 23, 2008 the IRS announced that it is increasing the optional standard mileage rates used for computing deductible automobile costs for business and other purposes, including moving. Beginning July 1, 2008, the new rates will be 58.5 cents per mile for business use, up from 50.5 cents, and 27 cents per mile for moving expenses, up from 19 cents. The IRS ordinarily adjusts the mileage rates once per year, but opted to do so in mid-year because the costs of fuel have escalated dramatically in recent months. For more information, see Announcement 2008-62 at www.irs.gov.
The foregoing is intended as general information only. Regarding your specific situation, Worldwide ERC® suggests that you consult with your own tax or legal advisor as appropriate.
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