[Fkatz]

THERE HAVE BEEN MANY INQUIRES I REFERENCE TO THE AUDITS OF THE DRIVERS THAT CLAIMED THE "STANDARD MILEAGE DEDUCTION" I AM DURING THIS WEEK INVOLVED AT TAX UPDATE SEMINARS, AND RESEARCH INFORMATION BEING A MEMBER OF THE NATIONAL ASSOCIATION OF TAX PROFESSIONALS
THAT THERE IS A POSSIABILTY THAT I WOULD BE ABLE TO CLEAR UP THIS ITEM FOR ALL OF US.
I AM MEETING WITH THE IRS IN THE CHICAGO OFFICE NEXT WEEK, AND IN ATLANTA 3 WEEKS LATER FOR 3 DAYS. i MIGHT HAVE A CLEARER PICTURE OF THIS ITEM THAT WE ALLWOULD LIKE TO KNOW,

THE WAY THAT I HAVE EXPLAINED THIS TO THE RESEARCH DEPT OF THE ASSOCIATION, THEY WILL HAVE TO GET BACK TO ME, IT WILL PROBABLY TAKE ABOUT A MONTH.

I WILL LET ALL KNOW WITH A PRINTED LETER FROM THE IRS, OR FROM CCH THE RULING THAT THE IRS IS QUOTING. WHAT I NEED IS THE CCM # IF ANYONE HAS THE CHIEF COUNCIL MEMO THAT WAS ISSUED AROUND OR BETWEEN 1997 TO 2000

fRANK

[Dreamer]

Hey Frank,

Did you ever find out what the deal with this is? I'm planning my return now, getting my 'ducks in line' as they say, and would like to know how I should plan. Should I keep track of every penny I spend on the van, fuel, repairs, tolls, etc, or just claim the standard mileage deduction?
Also, can you claim tolls if you claim standard mileage?

CAN we claim standard mileage deduction on a van? What should I classify myself as on tax return? Would it still be considered trucking?

Don't wanna mess with an audit!



Thanks in advance!

Dreamer

[Fkatz]

hi DREAMER,

AS A MATTER OF FACT THE ANSWER IS NO, I HAVE NOT RECEIVED ANY INFORMATION ON IT,
I CANNOT FIND THE ORIGINAL CHIEF COUNCIL MEMO IN MY RESEARCH ON THIS, BUT THERE IS NO STANDARDIZATION AS A DEFINITION FOR USING THE STANDARD MILEAGE ALLOWANCE, I KNOW THAT IS A LARGER DEDUCTION VERSUS ACTUAL FOR A CARGO VAN
fIRST OF ALL WHERE ARE YOU LOCATED STATE WISE, AS FAR AS A POSSIBLE AUDIT AND DISALLOWANCE, THEY WOULD HAVE TO PULL EVERY TRUCK DRIVERS RETURN AND GO THROUGH IT COMPLETELY AND THEY DO NOT HAVE THE PERSONNAL TO DO THIS. REMEMBER ITS A RAMDOMLY PICKED RETURN FOR AUDIT, CHANGE YOUR CLASSIFICATION TO DELIVERY SERVICE/COURIER, CODE 492000, A COURIER CARRIES SKIDS ALSO, cOURIER sERVICES THE MILEAGE IS ALLOWED. INSTEAD OF OTR CODE 484120

NOW DO YOU OWN MORE THAN ONE VAN, OR DO YOU OWN A "D" AND A "B", IF SO YOU HAVE TO USE ACTUAL EXPENSES,
ARE YOU DOING YOUR RETURN YOURSELF, OR HAVING IT DONE BY SOMEONE.
I KNOW YOUR IN BUSINESS QUITE A WHILE, HAS YOUR TAX PREPARER GIVEN YOU ALL THE POSSIBLE DEDUCTION ALLOWABLE, HAS HE TAKEN MILEAGE BEFORE, IF SO KEEP TAKING IT UNTIL CAUGHT. I WOULD STILL KEEP ALL THE RECEIPTS ANYWAY. I'VE BEEN TAKING MILEAGE SINCE I STARTED MYSELF.
HAVE NOT BEEN AUDITED.

HAS HE OR YOU TAKEN DEPRECIATION ON A VEHICLE, IF SO ITS ONLY FOR 3 YEARS ON A "d" & "e" AND 5 YEARS ON A "A,B OR C". USED THE INTEREST, LIABIILITY, BOBTAIL, CARGO INSURANCE, ETC , ON THE VEHICLE IF DOING ACTUAL

IF YOU WOULD LIKE ME TO DO YOUR RETURN, CALL OR E-MAIL AND I WILL SEND YOU THE INFORMATION.

FRANK

[Fkatz1@aol.com]

[Dreamer]

Hey again Frank,

Yes, I have been around expediting off and on since 1993, but I have always driven someone else's truck/van. As such, I always just had to keep track of fuel purchased, tolls, ATM fees, Comchek card loading fees, supplies(gloves etc).

This is the first time I will actually be planning to buy my OWN vehicle.

And... in answer to your other questions, I live in Ohio, and usually do my own taxes, using the HR Block Online program, where you just answer all the questions.

Thanks again,

Dreamer

[Fkatz]

DREAMER,
THE H & R PROGRAM ONLINE IS FINE, I DONT KNOW WHAT YOU PAID FOR THEM TO DO IT ONLINE. PLUS THE ELECTRONIC FILING FEE INORDER FOR YOU TO GET YOUR REFUND FASTER IF YOU DID THAT. BUT,CAN YOU EITHER FAX OR MAIL ME A COPY AND I WILL GO OVER IT AND SEE IF THERE ARE ANY DEDUCTIONS THAT YOU MISSED, I KNOW THERE ARE DEFINITELY SOME, YOU CAN AMEND YOUR RETURN UP TO 3 YEARS AFTER THE DATE YOU FILED IT. THAT IS THE STATUTE OF LIMITATIONS.
.
THE ONLINE VERSION THERE IS NO WAY THAT THE PER-DIEM FOR BEING OUT IS THE CORRECT PERCENTAGE THAT YOU ARE LEGALLY ENTITLED TO. IT ONLY FIGURES AT 50% INSTEAD OF THE 60 OR 65% THAT YOUR ALLOWED. 2004 IS 70%THE H& R PROGRAM IS MAINLY FOR INDIVIDUALS WHO DO NOT HAVE A COMPLICATED RETURN ON THE DEDUCTION, IT IS FOR STANDARD DEDUCTIONS BASICALLY ONLY, WHAT EVER IS LISTED IN THE PUBLICATION FOR BUSINESS DEDUCTIONS ARE THE ONLY ITEMS THAT IT WILL CALULATE CORRECTLY.
tHERE IS A LIST OF DEDUCTIONS THAT I CAN SEND YOU FOR FREE, JUST SUPPLY YOUR ADDRESS AND I WILL MAIL IT TO YOU WITH OTHER INFORMATION

ADDRESS IS

FRANK'S TAX SERVICE
226 CHEROKEE ST.
KINGS MOUNTAIN, NC 28086
(704) 739-4039
(704) 739-3934 FAX