Sunday, August 10, 2008

Mileage deduction

Thanks to Patti Gardner for this update...

Hi Carol Lee,

I sent the suggested letter to the senators from Virginia regarding the
amount you can deduct for mileage for volunteer work and this is the reply I
got. Please note the IRS information toward the bottom. Sen. Warner
suggested we contact them directly with our issue regarding the rates.

Patti Gardner

-------- Begin forwarded message --------
Subject: Correspondence from Senator Warner
Date: 8/1/2008 2:59:09 PM
From: Correspondence_NoReply@warner.senate.gov
To: didymus@verizon.net

August 1, 2008

Ms. Patti H. Gardner
305 Mulberry Drive
Blacksburg, Virginia 24060

Dear Ms. Gardner:

Thank you for contacting me regarding the Internal Revenue Services' (IRS)
standard mileage rates. I appreciate your thoughtful inquiry.

As you may know, the IRS normally reviews and updates its mileage rates once
a year in the fall for the next calendar year. Due to rising gas prices, the
IRS recently issued updated mileage rates effective July 1 st through the
end of the year. As of July 1, 2008, the standard mileage rates used to
calculate the deductible costs of operating an automobile is set at
following levels: 58.5 cents per mile for business miles driven; 27 cents
per mile driven for medical or moving purposes; and 14 cents per mile driven
for volunteer service.

The standard mileage rate for business and medical and moving purposes is
based on an annual study conducted by an independent contractor for the IRS.
However, the mileage rate for charitable miles is set by law. To date, no
related legislation has been introduced to modify the determination of the
standard mileage rate for business and medical and moving miles.

While I am not a member of the Senate Finance Committee, which has
jurisdiction over tax-related matters, please be assured that I will
certainly keep your views in mind should related legislation come before the
full Senate. You may also want to share your views with the IRS at the
following address:

Internal Revenue Service
1111 Constitution Ave, NW, Room 3241
Washington, DC 20224

Website: www.irs.gov
Telephone: (800)-829-1040

Communications such as yours provide an important means to evaluate the
interest and concerns of Virginians. If government is to be effective,
public officials must be aware of the interests of the people they serve.

Again, thank you for the benefit of your views.

With kind regards, I am

Sincerely,

John Warner
United States Senator

JW/hb

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