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The Internal Revenue Service (IRS) has announced that its optional standard mileage rate will increase to 65.5 cents per mile driven for business purposes. The increase takes effect on January 1, 2023.
Use of this rate is optional for private employers, though it is widely used as a standard rate for calculating mileage reimbursement for employees who use their personal vehicles for business purposes.
Action Item
If your organization uses the IRS rate to calculate mileage reimbursement, be sure to update your systems to account for this change.
(The IRS released IR-2022-234 on December 29, 2022)