Dec 30, 2008

Vanessa Payne

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IRS drops Mileage Reimbursement rate for 2009

The IRS will decrease by 3.5 cents the optional standard mileage rate beginning on Jan 1, 2009. The new rate of 55 cents per mile is slightly lower than the 58.5 cents rate in the second half of 2008. That previous rate was due to a special mid-year adjustment in response to rapidly rising gasoline prices. The 2009 mileage reimbursement rates are generally higher than one year ago.

While the IRS determines the mileage rate for tax purposes, GSA is responsible for Federal Travel Regulation (FTR) rate determination. By law, GSA is responsible for reviewing the privately owned vehicle mileage reimbursement mileage rate on a yearly basis and GSA may not exceed the IRS’ standard mileage reimbursement rate for a privately owned automobile (POA). GSA matched the IRS rate in both halves of 2008, but GSA has not yet matched the IRS rate decrease for 2009. Any adjustments to the FTR POV mileage rates will be immediately published in the Federal Register for official notification.

Revenue Procedure 2008-72 contains additional information on these standard mileage rates.  See the GSA Rate page for complete information on FTR rates.