While most Iowans are revolted by the way gasoline prices have gone sky-high and then higher, there’s a glimmer of good news on the subject. The Internal Revenue Service has raised the deduction certain taxpayers can claim for use of their cars. I-R-S spokesman Dan Boone says it should help a lot of small business owners and others who use their vehicles for work. Boone says for the first eight months of 2005, the rate is 40-point-five cents a mile but for the final four months, it’ll rise to 48-point-five cents a mile. He says the rate is being boosted to compensate for gasoline prices, which are about a dollar-a-gallon higher than they were a year ago. Boone says it’s rare for the I-R-S to make such a mid-year change. Boone says it’s only the second time the I-R-S has changed a deduction rate during the year. He says people who were displaced by the Gulf Coast hurricanes and Iowans who helped provide relief may also be eligible for filing extensions and other tax benefits. Boone recommends people surf the agency’s website at “www.irs.gov” for more information.
Iowa's Radio News Network
