{"id":8623,"date":"2017-06-01T08:00:31","date_gmt":"2017-06-01T13:00:31","guid":{"rendered":"http:\/\/taxprocenter.proconnect.intuit.com\/?p=8623"},"modified":"2017-06-01T08:00:32","modified_gmt":"2017-06-01T13:00:32","slug":"how-your-clients-can-use-technology-to-track-business-miles","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/how-your-clients-can-use-technology-to-track-business-miles\/","title":{"rendered":"How Your Clients Can Use Technology to Track Business Miles"},"content":{"rendered":"

The IRS is always on the hunt for easy deductions to disallow, and vehicle expenses are a perennial favorite of auditors. Keeping track of business miles is also one of the least favorite of tasks of many of our clients.<\/p>\n

If your clients are audited by the IRS, they will need to produce mileage records. At a minimum, the auditor will be looking for documentation of the mileage, purpose and the date of each trip. Will their mileage records pass scrutiny?<\/p>\n

\u00a0<\/strong>The Low-Tech Solution<\/strong><\/p>\n

For decades, the standard for tracking mileage has been a paper log with documentation of odometer readings, dates and descriptions of each trip, but few people take the time and effort to record every single trip.<\/p>\n

Some IRS auditors allow taxpayers to reconstruct their mileage records from appointment calendars. However, relying on this back-up method can mean missing out on deductions for trips to the post office, office supply or last-minute trips to meet with a customer that weren\u2019t recorded in their calendar. And, your client may land an auditor who won\u2019t allow retroactive reconstruction of mileage records.<\/p>\n

\u00a0<\/strong>Technology to the Rescue<\/strong><\/p>\n

An easier way to document their mileage is with a smartphone app. Using the phone\u2019s built-in GPS system, these apps record the date, location and mileage. All the client needs to do is categorize the drive as business, medical, charity-related, commuting or personal. This method is accepted by the IRS.<\/p>\n

At the end of the year, these apps create reports that can be exported and emailed. There are quite a few mileage apps to choose from, here is some guidance you can pass along to your clients:<\/p>\n