Don't have gas & mileage records. Is there a standard for deduction for IRS using your car for deliveries?

Question

a fire destroyed records. IRS auditing big time. Drove for company independently for 7 months in 2001. no recolection of what mileage and gas. anyone doing same work estimate how much one would use?

Answer 1

There is no standard deduction for business use of your personal car. You either deduct actual expenses or an amount based on actual miles driven. If you are being audited "big time" and have no records, forget about deducting your auto expenses. This is an area where many taxpayers exaggerate their expenses, so the IRS looks at everyone with suspicion unless they have good records.

Answer 2

IRS requires a mileage log. Taxpayers going to Tax Court have a consistent zero record without one. Maybe you can get a break because of the fire. If you drove a regular route, perhaps you could reconstruct the mileage using Yahoo maps. 2001 is a rather old year to be auditing. Are there other problems that will affect things?

Answer 3

If you don't have your mileage records, you have a problem. You can take either actual costs or a flat rate per mile, but to calculate the flat rate need to be able to show miles. If you can make a good estimate, and make a good case with the auditor for your estimate, they will very likely accept it, given the circumstances of the fire. But estimating what you drove 6 years ago could be pretty tough, so you might end up with the mileage disallowed.

Answer 4

VW's are okay on gas but there are lots of cars to choose from these days. Most small cars built withing the past 20 years are pretty good on gas and it really comes down to what you want in a car, how much you want to spend and how much you'll be driving. Get on craigslist and look for a small economy car within your chosen price range, then do some research on the cars that you like. Choose the one that fits your needs and meets your personal requirements. That's really the best way I know of to choose a car, since you want a car that you'll feel good about driving and being seen in as well as a car that gets good mileage. Fortunately, there are lots of choices for you, just find some you like, research them and pick one.

Answer 5

Since the IRS is only allowed to go back three years for an audit unless there is a material misstatement or fraud was committed the mileage seems to be a moot point.

Good Luck

Answer 6

Sometimes, if you had this same job and did the same mileage in adjoining years, they might accept those years as a guide. It depends on your attitude and the auditor's attitude, and what his supervisor wants. If there is enough money involved, you can appeal his assessment. Do not tell him you intend to appeal or he may jack up the assessment.