Close

Tax News

High-Risk Tax Audit Areas Related to Automobile Logs

Share this article...

Check out the other audit risks

Income Risk    Large Itemized Deductions     Unreported Income

Rental Income           Self-Employment          Home Office

Unreported Alimony     Automobile Expenses

 

High-Risk Tax Audit Areas Related to Automobile Logs

High DIF

IRS computers compare all tax returns to the national Discriminate Information Function (DIF) system average. The IRS calculates the DIF score by using a closely-guarded formula. Tax returns with the highest DIF scores are scrutinized by experienced IRS examining officers who determine which tax returns provide the best chance for collecting additional taxes, interest, and tax penalties.

Automobile expenses are a commonly audited item for business owners and real estate investors. It's important to keep good records of your mileage log. An easy way to do this is to show the date, beginning and ending odometer readings, the location, the business purpose, and the client.

Defend Yourself!

You are entitled to take every tax deduction that you qualify for and you should never be scared by the potential of an IRS tax audit. You must use common sense when making decisions about deductions and hire a qualified CPA to help you through the minefield of taxes

PDF
Printable PDF

Have a Question About This Topic?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the Terms of Use and Privacy Policy.

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.