IRS is auditing me for 2017 tax year

5☆OG

Well-Known Member
It's not a general audit. They are asking specifically for my mileage logs, so that rules out "other things" and the "one in a hundred" notion. It seems they don't like that I'm showing $0.49/mile income on RS.
how did you prepare your returns? professional cpa or chuey's online discount tax preperation
 

_Tron_

Well-Known Member
I have a $555 loss for 2019. If I substitute in the U/L combined mileage numbers I have a $4375 profit. Phew. Sticking with my [very accurate] figures.

Really drives home the point about that 58 cent deduction, does it not. For anyone with less than a 58 cent per mile cost to run their rideshare car that deduction is kind of a rideshare miracle.

You know what a miracle is dontcha? It's when god makes the impossible possible.

Ever notice a Resturant closing for a month then reopen under a new name, but the food is the same type. It's so they can continue to show for a loss.
Good argument for runing your RS business with a fictitious business name


My union dues alone last year were almost $7K.
OK. Perfect example of why I hate the idea of unionized rideshare. Collective bargaining, yes. The existing union paradigm, no.
 

Seamus

Well-Known Member
There's no going to anything. They are only asking me to send in my mileage logs.
Bingo! That’s the fallacy that many cling to that it isn’t worth it for the IRS to audit them because it costs them so much money. The most common mileage audit now is exactly what you got, a mail audit. Costs them next to nothing to have you send in your mileage log. With TripLog, I would be sending them 348 pages! No worries. It is so easy to do it right it makes you wonder why so many Uber drivers resist.
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Amsoil Uber Connect

Well-Known Member
Good luck with your IRS audit when you have no records to support your deduction.
To claim a mileage deduction the IRS requires a log.
No log = No deduction.
So you just Assume I do not have a log. :rolleyes:

It's not a general audit. They are asking specifically for my mileage logs, so that rules out "other things" and the "one in a hundred" notion. It seems they don't like that I'm showing $0.49/mile income on RS.
You signed the Return right ! and that it is true and correct. Right ?

Then you have wavied your right to be secure in books and papers. It matters not the reason why they give.
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You can lose money for all 5 years and still be a business
See what I mean ? Yet you turn profit (6 year) into a rule.

I never said it was a rule. :rolleyes:
 
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tohunt4me

Well-Known Member
Just got a notice that I'm being audited for my mileage for 2017. I used an app to track my mileage, so I'm covered, but just wanted to let people know to be prepared, don't BS your mileage and to hang on to your records.
WITH Wuhan Flu going Global

Your Uncle Sam is going to need all he can get.

Pay Up.
 

got a p

Well-Known Member
It depends where you live. Judging by your answer I guess you weren’t impacted by the cap on state taxes. In NY that was HUGE and more than killed the positive changes to the alternative minimum tax. Terrible for someone that has high property taxes and high state income taxes.
did that mainly (only) affect rich people?
 

LADryver

Well-Known Member
I wish we had a definitive answer on this from a creditable source
When you find your local tax expert, do yourself a huge favor. Find any other accurate phrase to use other than the inaccurate "dead miles" and you will be well on your way to getting a reliable answer.
 

Amsoil Uber Connect

Well-Known Member
We all wish it were that way. Of course they, IRS / Courts will not entertain Constitutional arguements.

Gee why is that ?

Cause they can not have the House of Cards collapse on themselves.
 

LADryver

Well-Known Member
You're right, I don't think the IRS compares mileage to Uber records to decide if they will audit you. However, one of the big triggers for an increased likelihood of an audit is showing little or no profit from a business. Apparently you're twice as likely to get audited if you show little to no income than you are if you make over $500k.
Actually there are criteria for determining an audit. They do not need to compare, but when they see a superficial disparity between miles and revenue, they suspect an error was made in the return. An audit is a check against errors. What happens to that is up to you and your preparer.
 

WEY00L

Well-Known Member
So you just Assume I do not have a log. :rolleyes:

See what I mean ? Yet you turn profit (6 year) into a rule.

I never said it was a rule. :rolleyes:
You never mentioned a log just that you doubled what U/L sent you....Bogus information
As a rule of thumb, Whatever uber/lyft say the on trip miles is, you are ok in doubling those miles without raising a flag.

Sure sounded like you were referring to a rule....either way bogus information:
On Schedule C you are allowed to show a loss for 5 years. In the 6th a profit should be shown or else.
 

Amsoil Uber Connect

Well-Known Member
Actually there are criteria for determining an audit. They do not need to compare, but when they see a superficial disparity between miles and revenue, they suspect an error was made in the return. An audit is a check against errors. What happens to that is up to you and your preparer.
^ and then there is that letter the service sends out that says. "We have changed your return." Usually when a math error is found.
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You never mentioned a log just that you doubled what U/L sent you....Bogus information
As a rule of thumb, Whatever uber/lyft say the on trip miles is, you are ok in doubling those miles without raising a flag.

Sure sounded like you were referring to a rule....either way bogus information:
On Schedule C you are allowed to show a loss for 5 years. In the 6th a profit should be shown or else.
So Rule of thumb is miss understood. I never said it was an accepted practice.

Sounded like and what is , is not the same. I can not remove walls in peoples minds.
 
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[email protected]

Well-Known Member
Actually there are criteria for determining an audit. They do not need to compare, but when they see a superficial disparity between miles and revenue, they suspect an error was made in the return. An audit is a check against errors. What happens to that is up to you and your preparer.
I don't disagree with you - we discussed the "all-mighty algorithm" above. They do a lot of comparisons for things, including comparing you to others in the same line of business. I feel like an audit isn't just to check for errors, but to also check for fraud. It's best to appear to be in line with expectations, unless you have legitimate support for any deviance from it. 😁
 

Jon Stoppable

Well-Known Member
We all wish it were that way. Of course they, IRS / Courts will not entertain Constitutional arguements.

Gee why is that ?

Cause they can not have the House of Cards collapse on themselves.
I'm going to guess you never had a subscription to a Tax Court reporting service. Cause there are a handful of tax protestor cases in every update. They always lose, and get penalized for bringing frivolous arguments before the court. Because the court has heard them a zillion times before.

Question for extra credit: Given that tax protestors consider the Tax Court to be invalid, why do they almost all bring their cases before that court, when they have the option of the District Court instead?
 
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