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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Looking on how to respond to an irs audit mileage deduction

Customer Question

Looking for assist on how to respond to an irs audit for my mileage deduction and I have very little records.
Submitted: 10 months ago.
Category: Tax
Expert:  Lev replied 10 months ago.

If you have missing records - the only way to support your deduction would be to re-establish mileage log.

Without supporting documents - your travel deductions will be simply disallowed.

Even if you re-establish the mileage log that will NOT guarantee any positive outcome.

You need to be very precised.

See for instance here

http://www.ustaxcourt.gov/InOpHistoric/ChapinSummaryCohen.SUM.WPD.pdf

In this case - a real estate broker, who deducted car expenses, but the IRS audited him and disallowed the entire deduction.

Expert:  Lev replied 10 months ago.

He did not keep a detailed mileage log but when he learned he was being audited by the IRS, he created a handwritten mileage log with a list of places he claimed to have driven. The Tax Court found that records weren’t sufficient and denied the entire deduction.

As an example - see page 27

Table 5-2. Daily Business Mileage and Expense Log

https://www.irs.gov/pub/irs-pdf/p463.pdf

That is an example of the mileage log acceptable by the IRS.

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