The Internal Revenue Service (IRS) has announced an adjustment to rates used to calculate the deductible costs of operating an automobile for business purposes for calendar year 2022.
The Details:
On December 17, 2021, the IRS stated via Notice 22-03 that the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business expenses was 58.5 cents per mile.
On June 9, 2022, the IRS issued Announcement 2022-13 modifying Notice 22-03 by revising the standard mileage rate. For business mileage expenses paid or incurred on or after July 1, 2022, the standard mileage is increased to 62.5 cents per mile from 58.5 cents per mile.
Note: The standard business mileage rate of 58.5 cents as outlined in Notice 22-03 will remain in effect for business expenses paid or incurred by the employee between the dates of January 1, 2022 through June 30, 2022.
Next Steps:
Employers may reimburse employees for business mileage at the rate of 62.5 cents per mile for expenses paid or incurred on or after July 1, 2022.
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