The IRS has released the 2006 optional standard mileage rates

Previously we alerted you to the changes brought on by the spike in gasoline prices following Hurricane Katrina which raised the mileage rate this past September from 40.5 cents per mile to 48.5 cents.

On Friday the IRS announced that effective January 1, 2006 the optional standard mileage rate for the use of a car (including vans, panel trucks, and pickups) will be 44.5 cents per mile. Employees, self-employed individuals, and other taxpayers may deduct the cost of operating a vehicle for business, medical, moving or charitable purposes.

The standard mileage rate for medical or moving expenses has been increased to 18 cents per mile from 15 cents per mile.

Additionally, the standard mileage rate, driven in service of charitable organizations, other than activities related to Hurricane Katrina relief, remains at 14 cents per mile.