Worldwide ERC Coalition Alert

IRS Announces Optional Standard Mileage Rates Effective January 1, 2008 

12/3/2007 

The IRS on November 27, 2007, announced new optional standard mileage rates for use in computing deductible costs of operating an automobile for business and other purposes, including moving.  Beginning January 1, 2008, the new rates will be 50.5 cents per mile for business use, up from 48.5 cents in 2007, and 19 cents per mile for moving expenses, down from 20 cents in 2007.  The IRS did not provide any reason for the decrease in the moving expense deduction, but the standard mileage for both business and moving are based on an annual study of relevant costs conducted by an independent contractor.  The new rates are discussed in detail in Rev. Proc. 2007-70, which can be accessed at www.irs.gov.