mileage log

[joanmcq]

saw this link on another message board. Can you believe this??? How to prepare fraudlulent docs!

https://www.mileagepal.com

[DTS]

Joan

Why pay a donation to this site when you can have clients trying to get away with this all the time and hand similar log sheets to you over the desk!

Unbelievable!

[JohnH]

Next thing we know

Wonder how long it will be until someone comes up with a site named Contributionspal or Expensereportpal.

[taxxcpa]

Donation to site

Why pay a donation to this site when you can have clients trying to get away with this all the time and hand similar log sheets to you over the desk!

Unbelievable!

The donation, of course, is deductible as a contribution on Schedule A.

[ChEAr$]

Only if

The donation, of course, is deductible as a contribution on Schedule A.

the mileage involves charitable contributions. Usually it would be deductible on schedule c,
or another business return.

Of course I wouldn't touch this with a ten foot pole; mine or anybody else's!

[gkaiseril]

May not be a charity

The donation, of course, is deductible as a contribution on Schedule A.

Only if the provider is a recognized charity, otherwise this is a business expense or noting.

This site is providing a service on a "shareware" basis, and any collections are still taxable to the providers. They are just providing a more free market place than having a set price.

Also they now demand a "donation", which even for a charity could be a problem.

[erchess]

I am reminded of a tool I bought years ago

when I was an avid fisher. It combines a knife, a scale for weighing a fish, and a ruler. What sets it apart is that the ruler and the scale each have two sides. One side, for honest fishers, has legal inches and legal pounds. The other, for dishonest fishers, shows readings of twice what the honest side shows. I wonder how long it will be before the guys behind the site in OP will be out of business and how much of their gain they will get to keep.

[taxxcpa]

Mileage calculator

I'll be sure and advise all my clients to use that web site instead of trying to keep those annoying mileage logs. I'm sure the IRS would pat me on the back for my strict adherence to the new MLTN rules for that position.

[Chief]

Mileage Documentation

I may be naive but I accept the documentation that the tax payer has for mileage. If they dont have written documentation I say so and recommend that a written pocket calendar be used in the future. Does not the engagement letter remove any burden of proof from the tax preparer?

[JG EA]

I may be naive but I accept the documentation that the tax payer has for mileage. If they dont have written documentation I say so and recommend that a written pocket calendar be used in the future. Does not the engagement letter remove any burden of proof from the tax preparer?

That's a good point.

A few years ago I heard about a tax preparer having a client sign about a $150,000 1065 K-1 line 1 entry and no self employment tax. The preparer told the client that it was unusual since he did work for the partnership, but the client wanted to not count it as SE income.

The preparer agreed if the client would sign a letter.

The taxpreparer was sued by this client when he had to pay SE tax. The judge said that doing something wrong does not get excused just by having someone sign a piece of paper. (I'm not so sure it was totally wrong but that's another point.) The thing here is the taxpayer's signature may show due diligence in some cases but not in others.

Conversely, If you didn't have the client sign, but you have notes that you asked the right mileage questions, well that is due diligence. I can't see getting out or into trouble by taxpayer's signature alone.

A tax attorney explained to me that your usual procedures come into play in such issues. Your cover letter, your procedures in obtaining information.

[joanmcq]

I'm wondering how I, as a preparer, would know the log was fraudulent? I keep mine on my palm, which I export to Excel to print out. From what I could glean from the website, the program produces a .csv file which is exportable to excel. Of course my spreadsheet has where I was going, which corresponds to bank deposits and purchases at Office depot, or my doctor's appointments...

[taxxcpa]

I agree with the judge

That's a good point.

A few years ago I heard about a tax preparer having a client sign about a $150,000 1065 K-1 line 1 entry and no self employment tax. The preparer told the client that it was unusual since he did work for the partnership, but the client wanted to not count it as SE income.

The preparer agreed if the client would sign a letter.

The taxpreparer was sued by this client when he had to pay SE tax. The judge said that doing something wrong does not get excused just by having someone sign a piece of paper. (I'm not so sure it was totally wrong but that's another point.) The thing here is the taxpayer's signature may show due diligence in some cases but not in others.

Conversely, If you didn't have the client sign, but you have notes that you asked the right mileage questions, well that is due diligence. I can't see getting out or into trouble by taxpayer's signature alone.

A tax attorney explained to me that your usual procedures come into play in such issues. Your cover letter, your procedures in obtaining information.

If I understand this correctly, the preparer knew it was wrong, but had the taxpayer sign a letter telling him to do something wrong. If the letter had stated that the taxpayer did not work for the partnership and was a passive investor, it would have been different unless there was evidence that the preparer knew otherwise.

[James467]

Not sure I am offended by the idea

I can actually see a few instances where this mileagepal.com would be useful. What if you only used the vechicle in question for business purposes (delivery vechicle, limo, etc.). Why bother with a daily log? Why not just track your mileage for the year and then use this program to generate daily numbers if you are forced to? Why would you hassle yourself with a daily log?

Either way it seems like it has a some legit uses, so it is really all how you decide to use it.

[LowerAlabamaOldEA]

Burden not removed

if you KNOW the client does not have the proof, regardless of any client engagement lettrer !

[Fuzzy Faced Leader]

I prepare an attachment to my engagement letter asking the client to write down the beginning and ending odometer readings, and then the business mileage within the total miles driven, and then attest that he has records to support the mileage, and they are written. I feel this fulfills my due diligence requirements.