Accounting and Tax Services
Dec 05

2006 IRS Mileage Rate

IRS has announced that the optional standard mileage rate has decreased 4¢ to 44.5¢ a mile for all business miles driven after 2005, down from 48.5¢ for the last four months of 2005. The rate for computing deductible medical or moving expenses after 2005 is decreased to 18¢ a mile, down from 22¢ for the last four months of 2005.

Background. Although IRS normally updates the mileage rates once a year in the fall for the next calendar year, back in Sept. IRS increased the optional standard mileage rates for the last four month of 2005 by 8¢ to 48.5¢ a mile. IRS made this special adjustment in recognition of gasoline price increases.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →