As an IRS taxpayer, you may be wondering what to do if you receive a letter from the IRS indicating your mileage was improperly claimed. The good news is that there are steps you can take to correct the issue and receive your correct mileage deduction.
What is an IRS Audit for Mileage?
An IRS mileage audit can be a routine or an investigatory process conducted by the Internal Revenue Service (IRS) to ensure that tax laws are being followed. The IRS may audit your mileage claims if you have claimed excessive mileage on your income tax returns.
They’ll try to determine whether there are signs of income underreporting or fraudulent mileage reimbursement claims.
What to Do if the IRS Rejected Your Mileage Tax Claim
If you submitted a mileage tax claim to the IRS and the claim was rejected, you may be wondering what to do next.
Here’s what you can do to proceed:
- First, make sure that you have all of the documents that you submitted to the IRS with your mileage tax claim. If you don’t have them, you may need to re-submit your claim.
- Next, review the IRS rejection letter that you received. The letter will tell you what information you need to provide in order for the IRS to reconsider your mileage tax claim.
- If you still think that your mileage tax claim should be approved, you may want to contact the IRS again. You can do this by phone or through the mail.
How to Prove Mileage to IRS
One way to prove your mileage is to keep track of your business miles yourself. This can be done using a mileage log, a mileage tracker app, or a physical document.
Make sure to track your business miles separately from your personal miles. This will help you account for the miles you’ve traveled for business purposes and will make it easier to prove your mileage to the IRS.
Another way to prove your mileage is to use a mileage calculator. These calculators can help you calculate your total miles traveled for the year, and they can also help you determine your business deduction. Make sure to use a reputable mileage calculator, as some calculators may not be accurate.
MileageWise mileage tracker app
MileageWise is a cutting-edge mileage tracking app that helps you save on your taxes. The average taxpayer can expect to receive a $12,000 annual mileage deduction for the year.
If you submit inaccurate mileage logs with gaps, The IRS is likely to fine you, and this fine can go up to 50% of your yearly income.
To make sure you get an accurate IRS-approved mileage log, MileageWise uses AI-powered technology in their app to arrive at their mileage log solution, which can help recreate your forgotten past mileage (based on your previous journeys and your clients’ locations). Rest assured that you’re getting the most accurate mileage tracking possible.
