Although the tax benefit for mileage used for work is no longer deductible as an unreimbursed employee expense, business mileage deduction is still an option for business owners.
Business mileage deduction has always been a hot area to audit for the IRS.
They know taxpayers do not keep or maintain appropriate contemporaneous logs necessary to substantiate their tax deductions.
**You should keep a record of your travel whether you take standard mileage or actual expenses on your return**
I see it time and time again. Taxpayers are so busy managing and growing their business they do not have time to kept a required log.
IRS Publication 463 defines Adequate evidence as “documentary evidence ordinarily… adequate if it shows the amount, date, place, and essential character of the expense.” (see page 25)
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Contact the Treasury Inspector General for Tax Administration to report a phone scam. Use their “IRS Impersonation Scam Reporting” web page. You can also call 800-366-4484.
In the recent months I’ve received several inquiries regarding the IRS ‘calling’ and threatening taxpayers.
These calls are not restricted to any specific type of taxpayer.
You will typically receive something in writing via postal mail (there are some exceptions). If you do owe the IRS be sure to contact them directly, ignoring a notice will not make them go away. See our blog on options for paying the IRS.
Their main number is 1.800.829.1040.
The IRS is aware of the increased scam calls. Select here to go directly to IRS.gov to learn more.
Congress authorized a new program which allows private debt collectors to collect outstanding past due ‘inactive’ account balances.
Select here to learn more about taxes collected by the private debt collection agencies.
If you or someone you know needs representation……you may contact our office at 508.203.1676.