Mileage deductions

[rickochet321]

What is the name of your state (only U.S. law)? Arkansas
I'm almost done with an 2004 IRS audit for my expenses.I have the IRS Tax Advocate involved who have been quite helpful. I have everything approved except interstate mileage. In '04 I secured work thru a union hall traveling to many job sites. The IRS office in Pa. is saying I can not deduct my mileage in state only out of state. My tax advocate said she remembers a case where the IRS was sued by contract labor and won about this issue. She wants me to somehow find this case or a tax law stating you can deduct this mileage when you don't work at the same job all year. She's been quite helpful and wants to help me win this but her hands are tied in some areas. Any help would be greatly appreciated. I thank you for your time,
Rick L.
Little Rock,AR.

 

[tranquility]

Case law is very specific to the facts. You have not provided anywhere near enough facts to do any research. Even then, anyone with the requisite knowledge and skill to look up a topic is kinda busy right now. But, you might get some help if you define exactly what is happening and what the IRS is claiming.

 

[rickochet321]

Tax ?

Tranquility,
I thank you for your response. I'll try to be a little more specific in my next post. I did find on the IRS website that you can claim mileage in my situation outside your metropolitan area , this is rather vague tho,a big city may have a metro area of a 100 miles or better , Where in my case I'm out in the country , closest town population 316 is 10 miles away. So what is my metropolitan area? Sounds like a question for the Tax Advocate tomorrow.
Thanks again , Rick

 

[davew128]

Why is 2004 even being examined still? If you filed on time, the statute of limitations is closed for that year.

 

[rickochet321]

statute of limitations

Dave ,
Its seven years on the limitations , and they hit me first in 03 , Which by the way they approved for the same deducts .So they decided to check 04 different IRS Office and state this time ,Oregon the first , Pa. the second time . Go figure. The Pa office is giving the Tax Advocate a hard time . Don't like getting overturned i guess. I was in Philly years ago and everybody i met was PO'd , so there ya go.
Take care , Rick

 

[irsos]

Dave ,
Its seven years on the limitations , and they hit me first in 03 , Which by the way they approved for the same deducts .So they decided to check 04 different IRS Office and state this time ,Oregon the first , Pa. the second time . Go figure. The Pa office is giving the Tax Advocate a hard time . Don't like getting overturned i guess. I was in Philly years ago and everybody i met was PO'd , so there ya go.
Take care , Rick

There is no seven years statute. It is three years from the due date or date filed, whichever is later. Exceptions are for substantial understatement of income or fraud. Did you sign a consent to extend the assessment statute?

 

[efflandt]

If you travel on business and stay overnight for business, the mileage is deductible, in state of out of state. Or travel from your place of work to jobsite and back to place of work is deductible. But commuting mileage is not deductible. So if you go from home to jobsite and return home the same day, that is not deductible, unless you have a legitimate home office for the benefit of your employer.

 

[rickochet321]

IRS Questions

Irsos ,
Well you always learn something new every day and its a fool that thinks he cannot. I thank you for correcting me on the seven year limitations . As for signing to continue an assessment statute , I don't think i did but the paperwork i have on this audit( I saved every letter)Fills a tupperware tub.If it would be better or worse for me if i did not is beyond me. I will ask my Tax Advocate about it ,Which by the way is my third one on this case . But i like her and she wants to do right and has not gave up on me.
And Irsos im not sure of the exact date this started and im too tired to dig thru my files right now but i will ask tomorrow.
Efflandt , I thank you very much for your advice too , As i was unaware that to claim mileage you had to spend the night , This one is new to me and to many others who beg to differ , But i dont know as thats why im on here getting other opinions. Im now hearing sixty miles or further but thats being checked by the TA .
And to all who are wondering just how much they are claiming i owe , I dont mind sharing,its around 4000.00 right now , Penalties included.At times i have almost given up and paid it . But ive been honest about my deductions and kept proper books,Plus the TA has been telling me to hang in there , So i will .Besides that , When I first appealed the very first letter from the IRS in regards to money owed it said more or less "under perjury or imprisonment are you statements true" I dont take that that very lightly,Nor would i think anyone else should.My Grandmother told me along time ago (Im 54 now) " You can go to hell fer lying , Just as well as you can stealing ".
So for now im gonna be the little guy kicking back , i dont know where it will get me , but i promise , it will be another lesson learned for sure.
Thanks to all and take care ,
Rick l