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To: DFG

My ACTUAL mileage for the year was 21,397. Foolishly I took advice from a co-worker who said to round it to a lower number because the real mileage would draw attention!


38 posted on 10/12/2011 12:15:14 PM PDT by celticfreedom (the most precious jewels you'll ever have around your neck are the arms of your children.)
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To: celticfreedom

The upside is that you can now get money back. You are just entitled to get money back if their is a correction in your favor.


41 posted on 10/12/2011 12:24:50 PM PDT by SeaHawkFan
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To: celticfreedom

This could be to your advantage if it is properly documented.

Respond with actual factual information with a notation of difference from the tax return.

Are they asking for information or have they proposed an adjustment?

If you document actual business miles with a log or other written documentation of actual mileage, then you should be able to resolve it to a no change audit or get a small refund.

If the IRS does not allow your additional miles, you can later file a 1040x amended return to claim your additional deduction and refund.

Do you have more than 1 client that is paying you a fee? Otherwise they may be looking to change your status to employee. It may be worthwhile to have a CPA review it before replying to IRS.


47 posted on 10/12/2011 4:28:18 PM PDT by ADSUM (Democracy works when citizens get involved and keep government honest.)
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