Tax Year 2022 Update: The IRS Responds to Inflation With A Rare Midyear Mileage Rate Change

6/21/2022

Tax Year 2022 Update: The IRS Responds to Inflation With A Rare Midyear Mileage Rate Change

The IRS has announced an increase in the optional standard mileage rate for the final 6 months of 2022.
Taxpayers may use the optional (instead of actual expenses) standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other tax deductible purposes.

Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.

For the final half of 2022 (July 1, 2022 to December 31 2022):

Business and Medical Mileage Change

• The standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents.
• The new rate for deductible medical & moving* expenses will be 22 cents, up 4 cents.
• The rate for charitable organizations remains unchanged at 14 cents per mile.

* availlble only for active-duty members of the military

Prices Means Infation

"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate."

Though the price of fuel is definitely a major factor when it comes to calculating your mileage, there are other factors that have to be taken into account, including the rate at which your car depreciates as well as its insurance and any other fixed costs you might have.

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Optional Business Standard Mileage Rate vs. Actual Costs

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Taxpayers continue to have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, although this does require extensive recordkeeping.

Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.

Further details are available in IR-2022-124.

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Are you Looking to Attain Government Contracts? We've Complied a List of 14 Need to Know Websites to Help.

6/9/2022

Are you Looking to Attain Government Contracts? We've Complied a List of 14 Need to Know Websites to Help.

We have compiled a list of websites that can be helpful to those who are seeking government contracts. Although most of these sites are intended for pre-award activities, some may be useful for post-award, or contract execution as well.

Name:

Website:

This is helpful if you want to:

Federal Business Opportunities (FBO)

https://sam.gov/content/opportunities

Find Federal Opportunities that exceed $25,000

Federal Procurement Data System

https://www.fpds.gov/ezsearch/search.do?ind exName=awardfull&templateName=1.4.4&s=F PDSNG.COM&q=contracts

Research contract awards in a number of ways including by agency, company, department, NAICS code, and many other options

General Services Administration (GSA)

Assistance for Small Business

https://www.gsa.gov/small-business#hubzone

Obtain advice if you want to sell to/through GSA, particularly if you are a small business

Government Forms

https://www.opm.gov/forms

Find a specific Government Form

Schedule a FREE No Pressure Consultation!

See All of Our Gov Con Services & Solutions

Small Business Administration (SBA)

http://www.sba.gov

Obtain information about how to start and grow a small business

8(a) Business Development (BD) Program

http://www.sba.gov/8abd/

The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses.

Historically Underutilized Business Zone (HUBZone) Program

http://www.sba.gov/hubzone/

The HUBZone program fuels small business growth in historically underutilized business zones.

Bonus Resource:

Hubzone Workbook

Service-Disabled Veteran-Owned Small Business (SDVOSB)

http://www.sba.gov/content/service-disabled-veteran-owned-small-business-concerns-sdvosbc

The federal government aims to award at least 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses each year.

Procurement Program Women- Owned Small Business (WOSB)

http://www.sba.gov/wosb

The federal government aims to award at least 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses (SDVOSB) each year.

Small Business Size Standards for NAICS codes

https://www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards/table-small-business-size-standards

Scroll Down--From there, there’s a table you can access.

https://siccode.com/naics-code-lookup-directory

Check the Size Standard to see what qualifies to be a small business under each NAICS code
Search for NAICS codes by description or number

NAICS Codes Lookup - North American Industry Classification System

System for Award Management (SAM)

https://www.sam.gov

Register your organization in order to do business with the Federal Government
Update your registration annually at a minimum
Explore other companies to see whether they are a small business, HUBZone etc. and
Inquire to see whether a potential Teaming Partner is debarred