On July 13, the Internal Revenue Service issued a bulletin that includes a mid-year adjustment in the standard reimbursable mileage rate for employees and others claiming business expenses related to driving. The IRS increased the reimbursement rate from $0.725 to $0.76 per mile for the remainder of the year. The IRS noted increased fuel costs as the basis for the mid-year adjustment.

The IRS bulletin also increased deductible mileage rates for other non-business expenses. Employers should review and adjust their business reimbursement policies and procedures to account for this update.

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