Gas wasn’t $4 per gallon when the IRS announced the 2011 business mileage rate of 51 cents, but the IRS has no plans to raise the rate, Nicola M. White reports at Tax Analysts ($link):
The rates are based on an annual study from a third party, said Ligeia Donis, assistant branch 1 chief (employment tax) in the IRS Office of Associate Chief Counsel (Tax-Exempt and Government Entities). Changing the rate in the middle of the year could present logistical challenges, and if the price of gas dropped, there would be more complications, she said. “If it increased now and gas prices drop significantly, you’re going to end up overpaying with regard to expenses incurred,” she said.
Anybody think there’s a risk of a gas price crash this summer?
Related: Kay Bell, Representatives ask IRS for mid-year hike of standard mileage rates