Democratic lawmakers recently sent a letter to IRS Commissioner Charles Rettig asking the IRS for a midyear increase in the 2022 optional standard mileage rate due to the steep rise in gas prices. The current rate taxpayers can use to deduct the cost of operating an automobile for business purposes in 2022 is 58.5 cents per mile.
There is precedent for the IRS to increase the standard mileage rate midyear in response to high gas prices. The IRS increased the standard mileage rate by 4.5 cents per mile in June 2011 in recognition of gasoline price increases due to civil and governmental unrest in the Middle East.
The Democratic group asked for the more generous deduction to be retroactive to March 1, though the lawmakers did not specify a rate. The IRS could choose to raise the mileage rate at any time, though there has not yet been any outward indication that the agency intends to do so. Taxpayers also have the option of deducting the actual cost of operating an automobile for business purposes instead of using the standard mileage rate.
Dustin Stamper is a managing director in Grant Thornton’s Washington National Tax Office and leads the tax legislative affairs practice for the firm.
Washington DC, Washington DC
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.