TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

Due to rising gas prices, the IRS announced the mileage rate will increase by eight cents to 58.5 cents a mile for all business miles driven from July 1 through Dec. 31, 2008. The new rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile. Full Article .

Manufacturing and Construction down! The Institute for Supply Management's manufacturing index for May showed its fourth straight monthly decline,. The Commerce Department reported construction spending dipped in April, for the sixth time in seven months, due to a drop in home building.

IRS Drops Interest Rates The Internal Revenue Service announced June 2, 2008 that interest rates for the calendar quarter beginning July 1, 2008, will drop by one percentage point. The new rates will be: five (5) percent for overpayments [four (4) percent in the case of a corporation]; five (5) percent for underpayments ; seven (7) percent for large corporate underpayments ; and two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.