In the last few articles that we wrote for this prestigious magazine, we have insisted on two points: the first is that we must investigate who we will hire to help us in the preparation of our taxes. And second, that we have knowledge of everything that we report. The consequences of this lack of attention can make the Internal Revenue Service summon us to do a review of our documents, that is, submit us to an audit in order to verify everything we report on the tax return.
The most common errors that occur with tax preparation, from preparers who do not know the transport industry well, are those in which they claim expenses based on the miles drove during the year or those who claim the miles or gasoline spent from home to work and vice versa. These types of expenses are red lights that would send you for a possible review of your documents by the IRS.
Another point where you should be very cautious is the percentage of expenses you claim. The transportation industry, like many other industries, has its type of expenses well established in relation to the amount of income that was had during the year. It is for this reason that your tax preparer must have knowledge of the parameters, be it the minimum or the maximum that you can report in expenses for a given year, since the industry changes year by year. Not all tax preparers have this type of knowledge and few really know this information. There are thousands of preparers throughout the country, but few are interested in researching and can offer a reliable service for truck drivers.
According to the aforementioned, we are receiving many clients with an audit problem in our office. And although we mentioned many times the origin of the problem at this point, many of you ignore our suggestions. But, the good thing is that in Jagg Tax Solution, Inc., we are ready to assist and guide you about how to deal with the IRS and overcome this pressure. Remember that you can find us throughout the year, either to answer your questions or to represent you before the federal government. Do not represent yourself alone since the result can be very unpleasant.