The US Internal Revenue Service for the last six months of 2022 will increase by four cents per mile the standard rate used to calculate the deductible costs of operating a car, van, pickup or panel truck for business purposes to 62.5 cents per mile, it announced late last week.
Many companies use the standard rate to calculate reimbursements for employees who use personal vehicles for business.
The IRS typically updates the standard mileage rate annually but made this mid-year adjustment “in recognition of gasoline price increases,” it said.
“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,” IRS commissioner Chuck Rettig said in a.
The last such midyear adjustment was in 2011, according to the IRS.