Allan K. Dorff, CPA Inc.

Enjoy your Labor Day!

POSSIBLE TAX REFUND DELAYS IN 2017 For applicable taxpayers used to receiving refunds early, a new law requires the IRS to hold refunds until mid-February 2017. This new rule applies to people claiming the Earned Income Tax Credit or the Additional Child Tax Credit. In addition, new identity theft and refund fraud safeguards have been put in place by the IRS and the states which may mean some tax returns and refunds face additional review.... The IRS will accept and process tax returns once the filing season begins just like normal and will probably be finished within the normal time frame. Please visit my website at www.akdcpa.com and/or subscribe to my monthly newsletter for more tax tips.

Reporting Business Mileage For Taxes We’re often asked about tracking your mileage and expenses for tax purposes. But, what are you supposed to do with it? Let’s go over the basics on reporting business mileage on your tax return. If, like many self-employed workers, you are a sole proprietor, your business income and business deductions will be reported using the IRS Schedule C, Profit or Loss From Business along with your personal tax return. Line 9 will contain the categ...ory for car and truck expenses. Because many people try to abuse this deduction, the IRS requires more details. For business mileage on your Schedule C, the IRS wants to know: The date you placed your car in service for business purposes The TOTAL miles you drove during the year The TOTAL BUSINESS miles you drove during the year The total commuting miles you drove during the year Was your vehicle available for personal use during off-duty hours? Do you have another vehicle available for personal use? Do you have evidence to support the mileage deduction? (If yes, is it written?) What The IRS Requires For Business Mileage Deductions: The most important thing you must remember is the IRS requires you to keep a contemporaneous record of your business use mileage. You can satisfy this requirement by making sure you’re keeping an accurate mileage log. The IRS doesn’t require you to submit the mileage log with your return to get the deduction, though. Instead, you’ll need the mileage log in case you get audited down the roadthat’s why it’s a good idea to keep your mileage logs for at least five years. The IRS requires your mileage log includes a record of: The dates of your business related trip The places you drove for business The business purpose of your trip Your mileage driven You’ll also want to log your business vehicle’s starting odometer reading. You only need the starting reading, though. The IRS does not require you to log your odometer reading for every business trip during the year. However, there are numerous apps available that help you contemporaneously track your business mileage and will certainly help you maximize your car and truck deduction. Visit www.akdcpa.com for more helpful ideas to save money on your income taxes. See more