Dealing with the IRS

What should you do if you get a notice from the IRS about your tax return? The first thing to do is call me and send me a copy of the notice. The worst thing you can do is just throw the notice in a drawer and ignore it. The IRS uses a progression of steps each one becoming more harsh to deal with taxpayers who don't respond. It may be better for  you to call the IRS as they won't talk to me unless I have a signed power of attorney from you.  If you do call, be prepared to wait about an hour before you get to a person. Call on a Tuesday or Wednesday for quicker results. They will have to verify that you are who you say you are by asking for your social security #, birth date, and address. Have your tax return in front of you when you call. This data unlocks your file and allows them access so they can discuss your issue.  I have also found that IRS agents treat me with courtesy and really do try to help.

Substantiation of Business Expenses for Vehicles

The IRS requires you to document your business use of your car in order to get a tax deduction through the use of a daily log, expense report, account book, trip sheet, or some other contemporaneous record. I use the tracking function in Quickbooks for my own business mileage. Estimating business auto expenses cannot be used for tax deductions. However if you have a vehicle that qualifies as a nonpersonal use vehicle, then you don't need to track business mileage as the IRS assumes all expenses are tax deductible. A nonpersonal vehicle can be a truck or van that has been modified so that it is unlikely to be used much for personal reasons like only a front bench for seating, shelving filling the cargo area loaded with equipment or merchandise, and with advertising on the side.

Path2College 529 Plan for Georgia

A 529 plan is a great way to save for college. Georgia wants to encourage residents to contribute to the Georgia plan by giving a $4,000 deduction per child per year for joint returns and $2,000 for all other filing statuses.