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Announcement 2008-63. This announcement informs taxpayers that the Internal Revenue Service is modifying Rev. Proc. 2007-70, 2007-50 I.R.B. 1162, by revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. The increase in the optional standard mileage rates is for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving expenses.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. The mileage rate that applies to the deduction for charitable contributions is fixed under §170(i) of the Internal Revenue code at 14 cents per mile and is not changed by this announcement. Important Note: These new rates are only effective for the last six months of 2008. They do not apply to eligible mileage acquired
before July 1, 2008.
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