Don't Risk Failing Your Audit, Track Your Automotive Mileage!

By Author: Mike Nielson
Total Articles: 162
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There are far too many things for business people to keep track of these days, but none are as tedious, time consuming, and flat out annoying as keeping a log of your mileage. With all the things to keep track of, from daily job tasks, sales orders, emails and trying to balance a personal life, mileage tracking often sinks down to the level of an afterthought, if not only because it just takes too much effort.

While this is all very common, drivers need to understand the implications of having a spotty or non-existent mileage record come tax time. It is required by law for individuals who drive for business to painstakingly track their business mileage. Some are doing it the old fashioned way with a paper logbook, and some have found new technological solutions like a GPS mileage tracker. Either way the Internal Revenue Service needs this information, and since the IRS knows most people do not keep a log, they have been cracking down on more and more individuals who have incomplete or fraudulent mileage logs.

Many drivers simply have no proof of their mileage. From sales and service people to the self-employed, ...
... often nobody is told the importance of keeping their miles travelled for business on file. Even when they have done their due diligence on the matter, they often keep logs that are inaccurate, incomplete, or lacking the necessary details to pass an audit. By the time tax season rounds the corner, many people find the stress and the amount of time required to track all those expenses to be an extreme inconvenience.

When it comes to filling tax returns, without an accurate mileage log, individuals are faced with the ‘mileage log dilemma’. Either be conservative and claim a small amount to avoid the risk of an audit, or claim an estimated large amount and suffer the potential consequences. This is quite unfortunate for many independent business owners as vehicle expense deduction is one of the larger tax benefits they can take advantage of. For example, a person driving 15,000 miles for business in 2011 at an IRS mileage rate of $0.51/mile would amount to a tax deduction of $7,650! With a return like that, can you really afford not to stay on top of your mileage?

So what is the best way to stay compliant with the law and easily maintain a proper log that will help you get back what could net a significant amount of money on your next return? As previously mentioned, the hot trend for modern day business people is to use a GPS mileage tracker. There are a few companies offering tax compliant mileage trackers now, and the technology has come a long way. There are a variety of solutions that are now available catering to a range of people, all completely automated and headache free. Look out as these mileage tracking devices become mainstream, and make sure you get on board. Track your miles, avoid audits, and get the full tax deduction you deserve!

For more information on mileage reimbursement, mileage log and car logbook visit http://www.satlogix.com/