IRS Raises Mileage Rate as O.C. Gas Prices Fall

The average price of a gallon of self-serve regular gasoline in Orange County fell seven-tenths of a cent Wednesday to $3.877, the lowest since March 5.

The price is 4.2 cents less than one week ago and 23.5 cents lower than one month ago but 78 cents higher than one year ago.

Meanwhile, the Internal Revenue Service today announced an increase in the business standard mileage rates for the final six months of 2011. That rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011.

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In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"This year's increased gas prices are having a major impact on individual Americans," said IRS Commissioner Doug Shulman in a statment. "The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."