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Treasury Union Asks IRS to Increase Gas Mileage Deduction Rate

June 7, 2022, 8:58 PM

A large federal employees union called on the IRS to increase its gas mileage deduction rate in light of skyrocketing gas prices.

The National Treasury Employees Union requested the agency increase its current rate of 58.5 cents per mile. The most recent rate adjustment was based off an annual report on automobile expenses; that report was issued prior to the Russian invasion of Ukraine, which helped increase gas prices.

The deduction rate for federal employees matches the maximum amount allowed by the IRS.

“I hope you will do whatever you can to see that all Americans who must depend on their cars to perform their jobs get some relief, including those who work for the federal government,” NTEU National President Tony Reardon wrote to IRS Commissioner Chuck Rettig. Reardon cited employees covered by NTEU, including IRS agents and bank examiners, that often drive significant distances as part of their jobs.

House Democrats last month called for the rate to be raised, citing the strain on ride-booking and truck drivers.

To contact the reporter on this story: Richard Tzul at rtzul@bloombergindustry.com

To contact the editors responsible for this story: Patrick Ambrosio at PAmbrosio@bloombergindustry.com; Alex Clearfield at aclearfield@bloombergindustry.com