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IRS heeds NAFCU’s call to adjust the 2022 optional mileage rate
The IRS last Thursday 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 urged the agency to adjust the mileage rate, to better reflect the 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.
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.
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. “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.
NAFCU applauds the IRS for understanding the impact on credit unions and their employees and heeding Berger’s recommendation to adjust upward.
In 2011, the IRS in a similar fashion recognized the impact of rising gas costs and made special adjustments to increase the optional standard mileage rates.
NAFCU continues to advocate for ways credit unions can adapt to the swiftly rising inflation and maintain their focus on providing exceptional financial services to over 130 million consumers.