Kelley Letter to IRS Head Everson Seeks Mid-Year Adjustment in Mileage Deduction

Press Release May 1, 2006

Washington, D.C.—The leader of the nation’s largest independent union of federal employees today called on the head of the Internal Revenue Service (IRS) to repeat his action of a year ago and make a midyear recalculation of the allowable mileage reimbursement rate.

In a letter to IRS Commissioner Mark Everson, President Colleen M. Kelley of the National Treasury Employees Union (NTEU) thanked Everson for his “helpful action last year” in raising the reimbursement rate to partially offset skyrocketing gasoline costs.

“We now find ourselves back in the same position,” the NTEU leader wrote. “Gas prices are reaching record levels and private as well as public sector employees are bearing the cost of traveling for their employers.”

She added: “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.”

Separately, President Kelley reiterated her support for legislation introduced last year that would temporarily increase the mileage deduction for both business-related travel and charitable services to 60 cents per mile. Introduced by Sen. Charles Schumer (D-NY) and Rep. John Lewis (D-GA), S. 1678 and H.R. 3750 are common sense bills that would temporarily increase the various mileage deductions to a level that more accurately reflects the true cost of driving.

The mid-year adjustment last year raised the deduction to 48.5 cents; however, by the time the normal year-end recalculation occurred, gas prices had moderated somewhat, and the rate was lowered to the present 44.5 cents per mile. Kelley said that rate “clearly is insufficient” in the face of high and rapidly-climbing gas prices around the country.

The Schumer-Lewis legislation also would instruct the General Services Administration (GSA) to make the identical increase to 60 cents a mile the rate for government travel, effective on the same day a new tax deductibility rate takes effect.

As the largest independent federal union, NTEU represents some 150,000 federal workers in 30 agencies and departments.

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