In light of record gasoline prices, the National Treasury Employees Union has called on the IRS to increase the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business (50.5 cents per mile), charitable (14 cents per mile), and medical or moving purposes (19 cents per mile). Since the IRS announced the 2008 mileage rates on November 27, 2007, the price of a gallon of gasoline in the U.S. has risen 31.2%, from $3.079 to $4.039.
Update: The Tax Foundation reports that Minnesota Senator Norm Colemen made a similar request to the IRS last week.
