Good Morning All,
For toughs of you who filed for extension, time is getting short, the due date by now as your all know is October 15, 2014 Which is Wednesday this year. the exact amount of time that your have is exactly 35 days from today.
So contact your Accountant/tax preparer to set up an appointment with him/her, or if you plan on doing it yourself make sure any deductions that you plan on using and entering on the tax return have all the receipts, logbooks, plus if you use the standard Mileage Rate, broken down by date, Shipper/Receiver, beginning mileage/ ending mileage, date. not just beginning and ending miles that you believe is correct.
Since the IRS is RED FLAGGING the standard mileage rate and you do not have the proper proof of each and every load, they will disallow this deduction.
There are 2 Major deduction that you would need to be able to take on your tax return and they are # 1 Standard Mileage Rate for "C" Units only.
The limitation for the Standard mileage deduction use is a max of 10,000 GVW. If you have a Straight Truck, and they audited you this deduction will be disallowed, and you have to take actual expenses.
YOU CANNOT TAKE MILEAGE AND ACTUAL EXPENSES PERIOD. ITS EITHER OR.
The other Major deduction is your Per Diem. If you have electronic Logs, you must have print outs of them in order to prove this deduction, otherwise it will be disallowed. Your Company is only required to keep these logs for 6 Months, So I suggest that you print out those logs Monthly, to be on the safe side.
The Per Diem is strictly a reimbursement deduction for the food, drinks, snacks that you purchase on the road. It is not a Cash Refund,
You have to figure the following to take the Correct Per Diem Calculation of the days.
From the time/date you leave your Residence, to the time you actually return home for a Day or week off. These beginning and ending days are figured as 1/4 days based on the time of day that you left and returned.
The Per Diem Deduction is another RED FLAG for an Audit.
The Small Business Division of the IRS is who will be auditing your Return IF you are Selected. and those are the 2 major deduction that they want written proof of.
Even though the Audit Selection Process is random, the possibility increased if you are a Cargo Van Driver.
Reason: 1. You Do not have to Log According to the DOT which proves to them that you are a transportation worked and subject to these allowances. But you must have written proof of the deduction you are claiming for the Per Diem
Reason: 2. If you use the mileage Deduction make sure you have proof of every load, on paper, as I stated above, plus on previous messages on this forum over the past years.
So if you have any other questions!. please do not hesitate to ask, I will be glad to give you any legal information that i can.
Please Contact me if you do have questions at the information below.
Frank's Tax & Business Service
Franklin Katz, ATP, PA,PB
[h=1]315 E. King St.
Kings Mountain, NC 28086Phone 1-704-739-4039
Fax: 1-704-739-3934
E-Mail: [email protected]
Website: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services[/h][h=1]WE PREPARE ONLY COMPLETE AND ACCURATE RETURNS. [/h]
For toughs of you who filed for extension, time is getting short, the due date by now as your all know is October 15, 2014 Which is Wednesday this year. the exact amount of time that your have is exactly 35 days from today.
So contact your Accountant/tax preparer to set up an appointment with him/her, or if you plan on doing it yourself make sure any deductions that you plan on using and entering on the tax return have all the receipts, logbooks, plus if you use the standard Mileage Rate, broken down by date, Shipper/Receiver, beginning mileage/ ending mileage, date. not just beginning and ending miles that you believe is correct.
Since the IRS is RED FLAGGING the standard mileage rate and you do not have the proper proof of each and every load, they will disallow this deduction.
There are 2 Major deduction that you would need to be able to take on your tax return and they are # 1 Standard Mileage Rate for "C" Units only.
The limitation for the Standard mileage deduction use is a max of 10,000 GVW. If you have a Straight Truck, and they audited you this deduction will be disallowed, and you have to take actual expenses.
YOU CANNOT TAKE MILEAGE AND ACTUAL EXPENSES PERIOD. ITS EITHER OR.
The other Major deduction is your Per Diem. If you have electronic Logs, you must have print outs of them in order to prove this deduction, otherwise it will be disallowed. Your Company is only required to keep these logs for 6 Months, So I suggest that you print out those logs Monthly, to be on the safe side.
The Per Diem is strictly a reimbursement deduction for the food, drinks, snacks that you purchase on the road. It is not a Cash Refund,
You have to figure the following to take the Correct Per Diem Calculation of the days.
From the time/date you leave your Residence, to the time you actually return home for a Day or week off. These beginning and ending days are figured as 1/4 days based on the time of day that you left and returned.
The Per Diem Deduction is another RED FLAG for an Audit.
The Small Business Division of the IRS is who will be auditing your Return IF you are Selected. and those are the 2 major deduction that they want written proof of.
Even though the Audit Selection Process is random, the possibility increased if you are a Cargo Van Driver.
Reason: 1. You Do not have to Log According to the DOT which proves to them that you are a transportation worked and subject to these allowances. But you must have written proof of the deduction you are claiming for the Per Diem
Reason: 2. If you use the mileage Deduction make sure you have proof of every load, on paper, as I stated above, plus on previous messages on this forum over the past years.
So if you have any other questions!. please do not hesitate to ask, I will be glad to give you any legal information that i can.
Please Contact me if you do have questions at the information below.
Frank's Tax & Business Service
Franklin Katz, ATP, PA,PB
[h=1]315 E. King St.
Kings Mountain, NC 28086Phone 1-704-739-4039
Fax: 1-704-739-3934
E-Mail: [email protected]
Website: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services[/h][h=1]WE PREPARE ONLY COMPLETE AND ACCURATE RETURNS. [/h]