30 April, 2021
The use of artificial intelligence accelerated across the U.S. economy in response to the Covid-19 pandemic, which was lethal for many operators of different industries. The areas that were most in need of AI-based technology development were connected to helping remote workers and students with new services, but facilitating online shopping and food delivery system optimization was also in the spotlight, not to mention having an effect on speeding up the development of new pharmaceuticals as well.
There are three fundamental ways to use artificial intelligence on the market: machine learning, natural language processing, and computer vision.
Artificial intelligence can speed up various processes in a way that has never been seen before. Development in the various fields of production can only be limited by human imagination.
For example, for a very long period of time, people thought about the task of Mileage log keeping as a manual activity, requiring a physical pen and paper done without the help of any mobile application, software, or other online tools. But despite this common belief and practice Mileage tracker apps and Mileage logging Software Solutions are already on the market. Mileage tracker apps are useful for those who are going to track their mileage ongoing to be prepared for the upcoming tax season. From continuously and accurately tracked miles it is easy to generate monthly Mileage logs in a format that complies with the guidelines of the IRS.
What about inaccurate, fragmented, semi-finished, or non-existing Mileage logs?
There are numerous pieces of information and circumstances a taxpayer has to pay attention to when keeping a Mileage log on paper. In theory, it looks like an easy task to keep track of trips. In practice, the IRS can request all of the taxpayer’s business data: Business expense reports, Odometer readings recorded at the Mechanic, Traffic cams, Tolls, Fees, etc. For example, one cannot report more mileage than it is possible to drive based on the size of a vehicle’s tank. An inspector can calculate that information. Or, in the case of an IRS Audit, if they check the taxpayer’s current odometer reading and the numbers don’t match with what the odometer is supposed to show according to the Mileage logs that will lead to a penalty. If these documents do not match with the data in the Mileage logs an IRS Fine can be 50% of a taxpayer’s yearly income!
According to Publication 463 of the IRS:
“If you use your car for both Business and Personal purposes, you must divide your expenses between Business and Personal use. You can divide your expense based on the miles driven for each purpose.”
Without proof of one’s Personal trips, proving the Ratio of a taxpayer’s Business and Personal trips is not possible. Both Personal and Business Mileage should be recorded but only the Business driving purpose is deductible.
Sometimes Mileage Tracker Apps promise they are going to start working automatically with the start of one’s phone, then they fail to deliver on that promise leaving users with fragmented Mileage logs at the end of the month.
The presence of AI technology on the Mileage Logging Market
A new way of ensuring that a Mileage log is “IRS-Proof”, containing zero contradicting information and gaps between trips and deficit in the total mileage, is utilizing AI- technology – specifically, machine learning -, to check finished documents and to offer an improved Mileage log draft that takes into account the user’s habits and pre-set parameters. Not to mention that by using AI the whole process of creating a monthly Mileage log can be reduced to approximately 7 minutes, which is a fraction of the time it takes to create handwritten Mileage logs.
MileageWise has developed and inserted an AI-based feature called the AdWise feature into their Mileage Logging Software, which is based on the aforementioned mechanisms. This AI-based approach is unprecedented when it comes to Mileage trackers and Mileage Logging Software Solutions on the U.S. market and it provides users with never-before-seen benefits. Users will be able to create IRS-Proof documents in a matter of minutes.
MileageWise has a two-platform formula to cover a full service for its users: A Mileage Tracker App for recording daily mileage on the go and a Web Dashboard where, with the help of the AI-based AdWise feature, users can pre-set their daily driving habits (such as their working hours, holiday dates, recurring daily trips). Based on these settings and the information that the software gathers through the daily use of the Mileage Tracker App and the Web Dashboard, it will generate a Mileage Log Recommendation for the user.
The Odometer reading in the produced Mileage log draft will correspond to the Odometer reading found in the user’s vehicle. The program will also check 70 logical conflicts in the Mileage log to ensure that the content is IRS-compliant.
Did you like this article?
Similar blog posts
- Track your trips by charging your phone - July 13, 2020
- Introducing MileageWise - October 18, 2019
- The Gig Economy is Evolving and so are the Tools helping them - February 28, 2021
- What does the Gig Economy have to do with mileage logging? - February 5, 2020
- Case Study #3: Incorrectly tracked miles - May 26, 2020