Consequences of Failing to Keep a Mileage Log
Audio version available here: https://static.wixstatic.com/mp3/5270f0_98bb49f6bb714423869b5652bd255ac8.mp3
Business mileage is a great way to increase your automobile tax deductions, but knowing and following the rules is imperative to avoiding an IRS audit and potential penalty. In the case of Flake v. Comm'r, these rules were not followed exactly and resulted in a stressful investigation and court case that rendered any attempted deductions moot. The Flakes failed to keep an accurate mileage log, and after an audit triggered by a separate deposit, they were found liable for an accuracy penalty. We encourage you to watch our YouTube video on maximizing auto deductions so that you are aware of the rules and regulations you need to follow in order to avoid a penalty: https://www.youtube.com/watch?v=fl_fssnLrCI&ab_channel=XQCPA. You should also read the article on our website: https://www.xqcpahouston.com/single-post/how-to-maximize-your-auto-deductions. Want more information on maximizing tax deductions? Follow us on our socials, or reach out at 832-295-3353.