“..either you claim the IRS allowed mileage rate, OR your actual expenses...you can’t do both...”
I only claimed my mileage. Was just wondering if I should present all expense receipts...or just the proof of mileage.
Just make sure you have a well worn “mileage book” that documents all your miles.....it’s easy to make one up...spilled coffee really helps.
Never take extra documentation that doesn't pertain to the actual audit issue. They're not looking for expenses, don't provide them. Provide only the mileage data.
“I only claimed my mileage. Was just wondering if I should present all expense receipts...or just the proof of mileage.”
Just show your mileage book or notes and the documentation as to why you have so much mileage and why you can claim it in the first place. If you don’t have a mileage book or notes, consider making one up. Be sure to use different pens and pencils, wrinkled paper, coffee stains, etc.
From what you stated, it sounds like you’re a bona fide independent contractor and must have used Form C for the mileage deduction, and had to pay your own half of social security, etc.
If all of the above is the case, I wouldn’t think you’d have much problem. But the absolute key if you meet with these people is DO NOT say anything else at all about the rest of your return or past returns. NOTHING! At this point, they have only the right to delve into the mileage issue and NOTHING ELSE.
If they try to lead you in any way to any other subject, just say that you’re sorry but you’re not prepared to deal with that at this time. Just keep repeating that. And for goodness sakes, DO NOT VOLUNTEER ANY OTHER INFORMATION. NOTHING! Keep your mouth shut. No idle chit-chat, no niceties, no personal information, no nothing. Just answer the questions, show the supporting documents and say and do nothing else. Oh, and take just the supporting documentation for the amount of mileage, why it was necessary to have that much mileage, etc. and NO OTHER DOCUMENTS! DO NOT BRING UP PAST YEAR’S TAXES EITHER!
I’ve also heard it’s best not to meet with these people in their office or at your home, that a neutral location is best. Not sure how true that is though.
I am an independent contractor. I work at the same 15-20 places and have done so for the past eight years.
I keep track of the miles from my house to those locations and code just those miles and tolls.
I only use the one card for business, and hardly anything else. I drive so much, I let my wife drive for “pleasure” stuff. In the end it comes out to about 90% of the miles driven each year.
The proof is that, as a photographer, I cannot shoot the event if I am not there....
Only give them what they ask for..nothing more...I assume you have a diary/appt book..where you should log you miles every day...that’s all you have to give to them..