Tax Guru-Ker$tetter Letter
Thursday, April 29, 2004
IRS Mileage Rates
Back last October, when IRS established the standard rate for 2004 business miles as 37.5 cents, the price of fuel was much lower than it is now. Normally, when we have a large increase during the year, as long as it appears to not be a temporary spike, IRS issues a new higher rate for the later months of the year. They have not done so as of yet. My inquiries to IRS personnel have yielded no time frame for such a new rate. In the meantime, trucking companies and airlines have been adding fuel surcharges to their rates.
If IRS doesn't issue a new higher rate soon, it will be another perfect example of how important it is to keep track of actual out of pocket vehicle expenses so they can be claimed instead of the standard rate, if they turn out to be higher, which they could very well be for 2004.