Taxes: Business use of vehicle

[Dean May]

The stories of Will and Steve should serve as stark wake up calls to us. IRS
auditors are not our friends and do not make the mistake of believing that
because you have nothing to hide you are okay should you get audited. Steve
had nothing to hide but he still spent big $$$ successfully defending
himself with absolutely no recourse for recovery. If you get audited make
sure that you use a professional to represent you in the audit. They know
how to answer the entrapping questions the auditors ask. I've been audited
twice and one of those times I had a pro represent me. I was amazed at how
he worded some of the answers. Money well spent.

 

For all the talk of freedom in this country this discussion should provide
prima facia evidence that we aren't free. When you have to work nearly half
a year to pay the feudal lords I think they call it serfdom.

 

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802

 

  _____  

From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Will Truitt
Sent: Wednesday, April 02, 2008 7:55 PM
To: 'Pianotech List'
Subject: RE: Taxes: Business use of vehicle

 

With all due respect to you Wim, I think you are sharing information about
mileage substantiation that is erroneous.  I can speak from the personal
experience of an IRS audit myself.  In 1994 my wife and I were given the
dubious honor of a compliance audit .  This is an audit where taxpayers are
chosen at random and audited, so that the IRS can get some idea of the level
of compliance amongst us.  It is one of the more complete audits they do.  

 

Long story short, after an exhaustive audit that lasted a couple of months,
the only thing they nailed me on was business use mileage.  I had kept good
records for the first 3 months or so of the year audited, but had gone to
sleep on my record keeping for the rest of the year.  I figured the
percentage of business mileage for the year on what it had been for those
months I kept records.  It probably was not too far off the mark.  But they
didn't care to look at my appointment book.  I could not substantiate the
mileage for the other 9 months.  Disallowed, plus interest and penalties.  

 

Your suggestion works fine for the person who will never be audited, which
is most people.  The self incrimination thing is beside the point - sloppy
record keeping is not the same as willful deception.  They're not going to
put you in jail for keeping poor records, but they will collect the fines
and interest.  

 

If it is too much trouble for someone to keep records, then simply do not
claim your mileage as a deduction.  Or if you do, be able to substantiate it
to the satisfaction of the IRS.  

 

Will Truitt

 

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