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IRS Increases Auto Mileage Rates Due to rising gas prices, 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 charity is set by statute, not the IRS, and remains at 14 cents a mile. SSA To Send Letters For Mismatched SS Numbers The Social Security Administration (SSA) has started mailing letters to employees whose names and Social Security Numbers (SSN) on 2007 Forms W-2 do not match SSA earnings records. The letters are called “Decentralized Correspondence” or “DECOR” letters. The SSA sends out the letters to give workers the opportunity to correct any discrepancies in their earnings records. If the name and SSN reported cannot be matched to an individual worker's earnings record, the SSA cannot credit the wages, and the worker may not qualify for Social Security benefits or may receive an incorrect benefit payout. The DECOR letters will only be sent to employees whose Forms W-2 included a usable address. Unlike the process in prior years, DECOR letters will not be sent to employers when there is no usable address for the employee on Form W-2. The SSA anticipates mailing out approximately 8-9 million DECOR letters for tax year 2007. IRS Warns Taxpayers Of New E-Mail And Telephone Scams Be wary of scams involving rebates. IRS announced scams that trick you into revealing personal and financial information which scammers use to commit identity theft. Most of the fraudulent activities can be conducted electronically from various locations, including overseas. IRS noted that committing these activities in cyberspace allows perpetrators to act quickly and cover their tracks before the victim becomes aware of the theft. IRS identified five general categories of fraudulent activity: 1. Telephone call in which consumers receive a call purporting to be from IRS and requesting bank account information so a rebate can be deposited; 2. Refund e-mail which falsely claims to come from IRS, informs you of rebate amount and leads you into a link to access a refund claim form; 3. Audit e-mail technique calculated to get your immediate attention. It instructs you to use links to complete forms with personal and account information; 4. Changes to tax law e-mail addressed to accountants and businesses which tells them to download information on tax law changes by using links to publications on businesses, estate taxes, excise taxes, exempt organizations, and IRAs, while implanting malicious software code known as “malware”; and 5. Paper check telephone call in which the caller claims to be from IRS, states that a check to the person receiving the call has not been cashed, and asks to verify the individual's bank account number. If you receive a questionable e-mail or telephone call, inform IRS at phishing@irs.gov .