2008

Effective January 1, 2009, the standard mileage reimbursement rates for medical and moving purposes have decreased from the current rates. As a reminder, the use of an automobile to obtain medical care may be a deductible medical expense if the expense is primarily for, and essential to, medical care.

The qualified transportation monthly limits for 2009 are increased to $120 for commuter transit and $230 for parking. (See Rev. Proc. 2008-66.)

The purpose of this notice is to delay the effective date of Revenue Ruling 2006-57, 2006-2 C.B. 911. Revenue Ruling 2006-57 provides guidance to employers on the use of smartcards, debit or credit cards, or other electronic media to provide qualified transportation fringes under Internal Revenue Code §§ 132(a)(5) and 132(f).

The Internal Revenue Service (IRS) and the U.S. Treasury Department have issued Proposed Regulations regarding Health Savings Accounts (HSAs).

Due to recent gasoline price increases, the IRS has announced in Announcement 2008-63 dated June 24, 2008, an eight-cent mid-year increase in the standard mileage rate for calculating the cost of using an automobile to obtain medical care.

Submit just one claim form each year and receive reimbursements automatically each pay period.