IRS Announces 2009 Per-Mile Business Driving Rate

Rismedia ---The Internal Revenue Service (IRS) has announced the new national per-mile business driving rate of 55.0 cents for the U.S. taxpayer, effective January 1, 2009. This new rate compares to a rate of 50.5 cents-per-mile from January 1 through June 30, 2008, and a rate of 58.5 cents-per-mile from July 1 through December 31, 2008.

“The change in the 2009 national per-mile rate reflects a combination of factors, but is driven primarily by the fluctuation in fuel prices,” states Ted Schuerman, senior project leader and vehicle cost expert within Government Services at Runzheimer International. “Other cost components, such as depreciation, insurance, and maintenance costs, remained relatively stable.”

To establish the annual per-mile rate, the IRS works closely with Runzheimer International, the Wisconsin-based workforce mobility firm. Runzheimer specializes in vehicle, travel, and living costs and has provided this service to the IRS since 1980.

The 55.0 cents-per-mile standard is the amount that a U.S. taxpayer can deduct for vehicle expenses on a 2009 tax return for business miles driven.


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Americans Face Greater Difficulty Seeking Tax Relief as IRS Continues Push for Tax Compliance During Economic Downturn

PRNewswire/ -- Amid the slow economy and increasing federal deficit, a much needed surge in tax revenue means that a growing number of taxpayers can expect to be audited while Americans already burdened by tax debt will find it harder than ever to resolve their IRS tax problems.

In fiscal year 2007, IRS audit rates were up from the previous year for individuals overall. Additionally, audits of S Corporations were up 26% and audits of partnerships increased almost 25% from 2006.

According to tax expert Michael Rozbruch, the IRS will continue to increase audits of corporations, partnerships and individuals. And if you do receive an audit letter, you should respond strategically and by the deadline in order to avoid being placed in the collection department.

"If the IRS garnishes your wages, they can take as much as 75% of your net pay and make you live on $168 a week," said Rozbruch, founder and CEO of Tax Resolution Services, a company that provides affordable solutions to people with IRS problems. "The IRS is the most brutal collection agency on the planet."

While taxpayers can expect renewed IRS compliance efforts, the national credit crisis will make it even more difficult for Americans to pay their taxes. But Americans who anticipate having problems with their taxes should know that there are ways to work with the IRS.

"Not filing your taxes is the worst thing you can do because you can incur a 25% failure to file penalty right off the bat," Rozbruch said. "What you need to do is start lining up expert tax representation to help negotiate a payment plan or an offer in compromise on your behalf."

Tax Resolution Services is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. The tax experts at TRS have a success rate of 90% -- second to none in the industry -- and an Offer in Compromise Settlement Rate of $0.13 on the dollar. For more information or to receive a FREE tax relief consultation, visit http://www.taxresolution.com/ or call (818) 774-1813.

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Combat the Rising Cost of Fuel by Maximizing Your Mileage Deductions

BUSINESS WIRE--The IRS has just announced an increase in some deductible mileage rates starting July lst that will continue for the rest of 2008. With gas prices soaring, it’s a good time to be taking advantage of all possible tax deductible mileage. Liberty Tax (www.libertytax.com) offers a free mileage log to easily track your deductible mileage. Mileage for some business, medical, charitable, moving, and educational purposes may be deductible.

Here are the new mileage rates that will take effect July 1st through the end of this year:
Business mileage: to 58.5 cents per mile from 50.5 cents per mile
Medical or moving mileage: to 27 cents per mile from 19 cents per mile
Charitable mileage: stays at 14 cents per mile for 2008

“The IRS considers business mileage those miles driven from the office to an auxiliary business location,” said John Hewitt, Founder and CEO of Liberty Tax Service. “Commuting miles, the miles driven from home, to an office are not allowed. Students who are taking courses that are required by their employer, or are work-related, may deduct this mileage at the business mileage rate.”

Those moving this summer can deduct moving mileage if the move is at least 50 miles, and is necessary in order to start work at a new work location. Deductible moving expenses include the cost of moving furniture and household items as well as lodging expenses en route. Always be sure to notify the IRS of your relocation, by sending a Form 8822, Change of Address, to the IRS Service Center where you filed your last return.

Medical miles can be claimed for miles driven to and from the doctor or dentist, and to and from a pharmacy to pick up a prescription. Charitable mileage is deductible. If you volunteer for a charitable or non-profit organization, your mileage is deductible to and from meetings and functions.