Got Gas?

Well, you most likely do have gas, but at what price? There’s clearly no gas shortage at the pump. But we’re all getting gas at prices that are making us feel more constipated than anything else. And that makes people angry. Every time I gas up someone is complaining about the almost daily increase in gas prices at the pump. Most people think the higher prices are specifically due to the war in the Ukraine. However, gas prices are not that simple since it’s based on crude oil which is a global commodity. And, when countries around the world start paying a higher price, which is happening now, the prices go up even though the U.S. is the largest producer of crude oil in the world.

The IRS is aware of the kick in the gut gas dependent businesses are experiencing. The increases are hitting the transportation industry hard and that causes a domino effect being felt by everyone as seen in higher prices for goods and services. On an individual level, if you and your family were planning a road trip for your summer vacation, you may be re-thinking that in favor of a staycation.

For anyone who uses their cars for business though, the IRS is making it a little easier by increasing the optional mileage rates. “On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile.  The new rate will be effective for traveling beginning on July 1, 2022, through December 31, 2022.  The old rate of 58.5 cents per mile will remain in effective through June 30, 2022.

This kind of a midyear increase is rare, and according to the IRS, the last time it happened was in 2011. Make sure your employer is aware of this increase. If you are an employer, make sure you let your employees know. Every little bit helps.

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