IRS Increases Per-Mile Driving Rate to 48.5 Cents: Rate Effective for Last Four Months of 2005

September 9, 2005

With Announced today, the Internal Revenue Service (IRS) increased the national per-mile business driving rate to 48.5 cents-per-mile for the last four months of 2005. After this time period, the tax agency plans to review vehicle costs and reevaluate the rate.

This is an increase of 8 cents from the 40.5 cents-per-mile rate previously established. The cents-per-mile standard is the amount the U.S. taxpayer can deduct for vehicle expenses on his or her 2005 tax return for business miles driven.

The decision to increase the national per-mile business driving rate reflected unprecedented shifts in gas prices recently. Although not involved in the rate increase announced today, Runzheimer International will work closely with the IRS to establish the rate for the time period beginning January 1, 2006. Runzheimer International has provided this annual service to the IRS since 1980.

The IRS also announced a new four-month rate for computing deductible medical or moving expenses of 22 cents-per-mile, up from 15 cents for the first eight months of 2005. The rate for providing services for charitable organizations remains at 14 cents-per-mile.

About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to employee mobility, Runzheimer is a global leader in nontaxable employee-provided business vehicle reimbursement programs, employee compensation and relocation, and travel management.

For more information, contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262)971-2277, ljd@runzheimer.com, www.runzheimer.com.