WASHINGTON—The IRS has increased its 2022 optional mileage rate for business miles from 57.5 cents to 62.5 cents for the remainder of the year.
The new optional mileage rate is set to go into effect on July 1, 2022.
NAFCU President and CEO Dan Berger in March had urged the agency to adjust the mileage rate to better reflect what he said were strained oil market and rising gas prices as well as the impacts consumers face because of inflation and economic recovery related to the coronavirus pandemic.
Gas prices, of course, have only gone up since March.
In the letter, Berger asked the IRS to take into consideration the ongoing Ukraine-Russia conflict, which continues to heavily influence the demand for oil, causing gas prices to steadily climb.
‘Fair Reflection’ Deserved
The standard optional milage rate helps credit unions determine the correct rate to rate to reimburse employees for work-related automobile travel, meaning it must match the elevated demand for oil and increased gas prices, NAFCU stated.
“With gas prices rising swiftly and the 2022 rate no longer representing an accurate measure of prices, credit unions and their employees deserve a rate that is a fair reflection of the current market,” wrote Berger.