IRS Increases Standard Mileage Rate

As part of their ongoing efforts to provide short-term tax relief as a result of Hurricane Katrina, the Internal Revenue Service increased the standard mileage rate for the last few months of 2005. The standard mileage rate for business miles increases to 48.5 cents per mile, and the standard rate for moving increases to 22 cents per mile. The rate for charitable miles remains the same, at 14 cents per mile. The new mileage rates are only temporary, according to the IRS announcement.