Last updated: Oct 24, 2023
You know how the saying goes about the two sure things in life.
The tax season always requires a great deal of preparation to ensure compliance, accuracy, and optimization of potential savings. Luckily, the digital age has significantly simplified this process, with online tax preparation platforms and e-filing becoming the go-to options for many due to their convenience, efficiency, and added benefits.
Still, it’s easy to feel overwhelmed while navigating the maze of tax regulations, but don’t fret. There’s help at hand!
Why You Should Seek Tax Help
Unless you are a tax expert yourself, it’s highly advisable that you seek help to make sure that your claims can be properly backed up.
While it might not be an everyday occurrence, the IRS (Internal Revenue Service) regularly audits individuals and businesses to ensure compliance with U.S. tax laws and to verify the accuracy of the tax returns filed.
If you are wondering whether it has a real-world possibility that your business gets audited, it’s good to remember that in 2022 alone, the IRS conducted 708,309 audits that resulted in nearly $30.2 billion in recommended additional tax!
What Does A Mileage Log Have To Do With An IRS Audit?
While there are several other possible issues that may trigger an IRS-audit, such as claiming significantly higher deductions in relation to one’s income, an improper or incomplete mileage log can indeed catch the IRS’s attention. If you wonder what could go wrong, here’s a list for you.
What Can Make My Mileage Log Incomplete or Improper?
The IRS requires taxpayers to maintain relevant records of their vehicle use if they claim mileage deductions. A mileage log should include the date, purpose of the trip, starting and ending odometer readings, and total miles driven. An incomplete, inaccurate, or missing log can raise red flags.
If the mileage deductions seem disproportionately high compared to the taxpayer’s income or the nature of their business, it might draw the IRS’s attention. If there’s no proper mileage log to justify these deductions, it increases the risk of an audit.
Inconsistency with Other Deductions
If there are inconsistencies between the mileage claimed and other related deductions (e.g., high fuel or other vehicle expenses but low mileage), it might raise suspicions.
If a taxpayer faced issues with their mileage deductions in a prior year’s audit and continues to claim significant mileage deductions without proper logs, the IRS might decide to review their return again.
Commonly Abused Deduction
The IRS is aware that the mileage deduction can be easily abused. As a result, they might be more vigilant about reviewing returns that claim high vehicle expenses, especially if they lack proper documentation.
Mixed Personal and Business Use
If a vehicle is used for both personal and business purposes, the IRS requires the taxpayer to allocate expenses accordingly. An incomplete or vague mileage log can make it difficult to determine the legitimacy of the business use claimed.
To reduce the risk of an IRS audit due to mileage deductions:
- Always maintain a detailed and accurate mileage log.
- Ensure consistency between mileage and other related deductions.
- Be cautious and accurate when claiming vehicle-related expenses.
- Keep receipts and other related documentation.
However, like many other, you may also feel like you failed to do proper mileage documentation in prior years and want to dodge an IRS fine. Then comes the question:
How can MileageWise’s IRS Audit Defense Service Help You?
We truly understand that looking after your mileage logs feels like a chore while you still want to make sure that your mileage log stands up against an IRS audit and is 100% IRS-Proof.
MileageWise offers you a prepaid IRS Mileage Log Audit Defense service for only $49.99/year/vehicle, so you would be protected from potential IRS audits even if you’ve submitted unverified mileage tax claims. As we’ve pointed out earlier, these audits are more common than one might think, and failing to provide sufficient documentation can lead to significant stress and fines of up to 75% of claimed income, as well as the loss of tax refunds.
MileageWise provides a comprehensive solution, including retrospective mileage logging and a mileage log tax preparation service. The prepaid Mileage Log Audit Defense is your the best value option, offering protection against audits and IRS-proof mileage logs at a cost-effective rate, backed by a 10x money-back guarantee.
In the event of an IRS audit, MileageWise’s experts use state-of-the-art software to create an IRS-proof mileage log based on various data sources provided by you, ensuring accuracy and compliance. This service aims to alleviate the anxiety and challenges associated with IRS audits, providing peace of mind and financial protection.
What Industry-First Features Does MileageWise Work With?
1. Mileage Log Tax Preparation Service:
Understanding that not everyone has the time or expertise to manage their mileage logs, MileageWise’s Mileage Log Preparation Service steps in as a personal mileage log manager.
Hands-Free Management: For those who prefer to outsource their mileage log management entirely, our Mileage Log Tax Preparation Service takes over. Entrust your logs to our team of experts who handle everything – from recording trips to ensuring compliance with tax regulations.
Accuracy Guaranteed: With professionals overseeing and fixing your mileage records, you can be assured of detailed and accurate logs, eliminating any worries of potential audit pitfalls.
Tailored to Your Needs: The Mileage Log Tax Preparation Service is adaptable, offering a bespoke experience based on individual requirements, be it frequency of updates or specific reporting needs.
2. Google Timeline Service:
For the modern traveler who relies heavily on Google Maps, the Google Timeline import feature is a game-changer.
Retrospective Trip Recovery: Ever missed logging a few trips? No worries. Our solution can recover trip gaps retrospectively using your Google Maps records. If you want, you can do it yourself too, but we are also glad to manage the entire process for you!
Comprehensive Details: The feature doesn’t just recover the basic details but offers comprehensive insights – starting and ending locations, stop durations, and routes taken. This level of detail ensures that your mileage log meets the stringent IRS requirements.
Privacy First: Understanding the sensitivity of location data, our platform ensures end-to-end encryption and strict privacy protocols. Your data is accessed solely for log recovery and never shared or used for other purposes.
3. AI Wizard for Trip Suggestions:
Enter the future of mileage log management with the AI Wizard feature.
Smart Trip Recovery: Forgot to log a trip or lost its paper record? Instead of leaving gaps, the AI Wizard analyzes your previous driving patterns and suggests realistic trips that you might have taken.
Adaptive Learning: The more you use the system, the smarter the AI Wizard gets. Over time, it begins to understand your routine, frequently visited locations, and travel patterns, making its suggestions increasingly accurate.
Manual Oversight: While the AI Wizard provides suggestions, the final control remains in your hands. You can review, edit, or approve the AI-generated entries, ensuring that the logs truly represent your travel history.
Mileage Log Audit Defense At Its Best
In conclusion, MileageWise’s prepaid IRS Mileage Log Audit Defense is a crucial safeguard for individuals who have filed mileage tax claims without proper verification. With IRS audits happening more frequently than many realize, the potential consequences of inadequate documentation can be financially devastating. MileageWise offers a cost-effective solution at just $49.99/year/vehicle, providing not only peace of mind but also a 10x money-back guarantee.
User Ratings (Trustpilot)
iOS App User Ratings
Android App User Ratings
Average Possible Business Mileage Deduction
Produces IRS-Proof Mileage Logs
Creates Retrospective Mileage Logs
Imports Trips and locations from Google Timeline
AI Wizard Technology for Mileage Recovery
|Sampling / Recurring Daily Trips|
|Mass Distance Calculation|
|Built-In IRS Auditor for 70 Logical Conflicts Correction|
|Mileage Tracker App|
|Vehicle Expense Tracker|
|Manual Trip Recording|
|Bluetooth Auto Tracking - with no hardware needed|
|Plug'N'Go Auto Tracking|
|Vehicle Movement Monitoring|
|Battery and Data Friendly|
|Other Software Integrations|
|Trip List Import|
from other Mileage Trackers
|Trip List Import|
|Shared Dashboard for Teams|
Features are all related to mileage tracking
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