I.R.S. thinks the State of Maine is too cheap

When the IRS raises the deductible for mileage, you know things are bad, or I'm from the government and I am here to help you.

I.R.S. says gas is getting expensive.

The Internal Revenue Service raises the mileage rate that can be claimed on your (business) taxes.

The I.R.S. is changing the rate used to calculate deductible operating costs for business vehicles from 50.5 cents a mile to 58.5 cents immediately and for the last six months of 2008.

"Rising gas prices are having a major impact on individual Americans," said IRS Commissioner Doug Shulman. (Ya think?) "Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile."

This is an indicator of the urgency of the action as the IRS usually updates the mileage rates only in the fall for the next calendar year.

Last week Sen. Norm Coleman, R-Minnesota sent a letter to Shulman urging him to increase the rate. Don’t give the R too much credit, remember, this will affect businesses not employees.

State Employees have been forced to drive their own vehicles for far less than the cost of maintenance and fuel for far too long. This has been ofter topped off with delayed expense reimbursement due to agencies that pay employees last. In 2007 a number of employees went six or more weeks without reimbursement while driving hundreds of miles a week.

This can not go on.

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