April 15th has come and gone and the last thing you want is to hear from the IRS; however, sometimes the IRS needs to follow up on tax-related issues and they will send notices that you might need to respond to. Don’t panic! Not all of these letters contain bad news--sometimes you could even be receiving more money for your tax refund! Here are some common reasons why people receive IRS notices: Balance Due You Qualify for Additional Tax Credits A Change to Your Estimated Tax Credit Amount A Change to a Previous Year’s Refunds Overpayments Issues with Direct Deposit Changes to Filing Requirements Confirmation of Tax Return Receipt Address Update Needed To learn … [Read more...]
Mileage Logs: A Must for Tax Time
Come tax season, people are always asking me about mileage logs. A recent Tax Court case highlights the importance of keeping a log. In the case, a Mr. Keith Dunford lost $93,656 in business deductions for his business motorhome and two business cars due to lack of a business mileage log. Receipts are Not Enough Even though he had receipts for the expenses of his vehicles, his failure to keep mileage logs left the courts unable to determine the extent of the business use of his vehicles. The issues considered by the court included the ability of the Dunfords to deduct the depreciation and other expense of the motorhome and their business vehicles, whether the interest expense on the loan … [Read more...]