Tax season is here and if you’re like most people, you’re probably preparing your taxes now. If you are self employed or a small business and use your own vehicles for business, you may need to prove mileage to the IRS.
But if you’re like most people, you probably aren’t preparing your mileage log for an IRS mileage audit.
What is an IRS Audit for Mileage?
If you’re keeping track of your mileage, you may be wondering why your IRS audit may have something to do with it.
An IRS audit is an investigation by the IRS into whether you’ve been illegally claiming tax savings on your mileage. An IRS audit without mileage log will not help in checking whether your mileage is legitimate or not.
The IRS may also be looking into your other tax situations, such as your income, estate, and gift taxes.
If you’re worried about an IRS audit, there are a few things you can do to prepare for it.
- First, make sure you’re tracking your mileage that meets IRS mileage log requirements.
- You should also make sure you’re claiming all the deductions and credits you’re eligible for.
- And finally, if you have any questions about your business miles or your mileage tax situation, don’t hesitate to contact the IRS.
What you should do if the IRS rejected your Mileage Tax Claim
If you filed your tax return and claimed the benefits of the mileage deduction and your return was rejected by the IRS, there are a few things you can do.
Remember that if you gave a mileage log IRS did not accept, the IRS is not obligated to accept your return even if it meets all the requirements. In fact, the IRS is allowed to reject your return for any reason, including if you did not meet all the IRS mileage log requirements.
If your return is rejected, you should contact the IRS as soon as possible to find out why it was rejected. The IRS will likely ask you for additional information, such as your mileage logs or receipts.
When you cannot get the IRS to accept your return, you may be able to file an income tax refund claim. To do this, you will need to gather all of the information the IRS requested in your initial return, including your mileage logs and receipts and proof of income and expenses.
You may be able to file a claim for a credit against your federal income taxes, when you cannot get the IRS to accept your return or file a refund claim. To do this, you will need to file a claim for refund of mileage deduction and provide the IRS with your mileage logs and receipts.
How to prove Mileage to IRS
Mileage is one of the factors the IRS uses to determine your tax liability. If you use your car for business purposes, you may also have to track your mileage and report it to the IRS.
- Track it yourself. This is the easiest way to prove your mileage. Simply keep track of your miles driven and compare it to your odometer reading.
- Get a mileage log. This is a record of your miles driven, including the date, time, and location of each trip.
- Use a mileage tracking app. Many smartphone apps allow you to track your mileage and report it to the IRS.
What is MileageWise?
MileageWise is an AI-powered mileage tracker app that can help recreate your forgotten past mileage (based on your previous journeys and your clients’ locations).
This handy tool can help you save an average of $12,000 in taxes for one tax year per car. Additionally, MileageWise offers 3+1 automatic trip tracking modes: vehicle movement monitoring, Car Bluetooth tracking, and Plug’N’Go phone charge tracking.
Finally, with the Trip import from Google Maps Timeline, you can easily track your journeys and keep an online mileage log that is 100% IRS-compliant. If you’re looking to save on your taxes this year, then check out MileageWise!