The pressure to change the business mileage rate mid-year is increasing…

The president of the National Treasury Employees Union (NTEU) has written to IRS asking it to hike the rate to ease the economic pain for workers who rely on their cars to take care of business.

Last time NTEU made a similar request, 2005, IRS complied with a sizeable mid-year increase.

NTEU noted that pending legislation would raise the mileage rate to as much as 70 cents — it could also take a while to become law. IRS has the authority to make a change much sooner.

Could we see a two-step change: IRS institutes one mid-year hike in the rate, and then Congress increases it further? It’s anyone’s guess, but one thing is certain: With gas at $4/gallon — and only going up — something’s gotta give soon.

Tags: IRS, mileage rate