IRS Increases Mileage Compensation For Workers

The Internal Revenue Service, reflecting higher prices at gas pumps nationwide, on Friday, September 9, 2005, increased the mileage reimbursement rate that workers claim when using personal cars for work.

The decision raised the rate to 48.5 cents a mile for the last four months of the year, after which the tax agency plans to look again at gas prices and reevaluate the rate. It had been 40.5 cents.

Many businesses use the IRS rate as a benchmark for reimbursing employees for travel costs.