In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1^st. The medical and moving standard mileage rate is increasing to 23½ per mile, also on July 1st.
As always, it is important to be able to provide accurate records of your mileage both before and after this date,” says Kevin Aaron, Tax Specialist for Simons Bitzer & Associates.  This information will greatly assist your accounting firm in applying the appropriate tax rate to maximize your benefit. 
The new optional standard mileage rates will apply until superseded by future guidance and can be used by taxpayers to calculate the deductible costs of operating an automobile. Alternatively, taxpayers can instead use their actual costs, but must maintain adequate records and be able to substantiate their expenses.
The standard mileage rate for services to charitable organizations is set by statute at 14 cents per mile and remains unchanged by Thursday’s announcement.
The former rates (51 cents per mile for business use, 19 cents per mile for medical and moving expenses) continue to apply to expenses incurred before July 1, 2011.
With questions or for more information, please contact Simons Bitzer & Associates at (317) 782-3070.