Everyone is looking forward to the holidays, and time off to spend with family and friends. Not many people are looking forward to what comes on the heels of the holidays: Tax season.
With the inevitability of filing federal income tax returns comes the predictable mess of deductions, shelters, loopholes and more. Trying to figure out which of these do and do not apply to you and your finances can be a nightmare. Far too often, people file their taxes and then hear from the IRS that they underreported receipts or overstated expenses.
The IRS is trying to help people make accurate statements about the deductible costs of operating a motor vehicle for business and other reasons. Unfortunately, the tax agency has reduced the standard mileages rates for your car, van, pick-up or panel truck, dropping it to 53.5 cents per mile for business use (this year's rate was 54 cents).
The following mileage rates were also adjusted:
Medical or moving: dropped to 17 cents per mile, from 19 cents per mile in 2016.
Service or charitable organization: 14 cents per mile, down from 16 cents per mile in 2016.
The IRS says it dropped mileage rates because of factors such as declining fuel prices. A senior VP at an expense management service company that provided data and analytics to the Internal Revenue Service said the decline in fuel costs was offset by increases in vehicle insurance and maintenance.
Those who misstate expenses can be subject to IRS investigation, which can, in some cases, result in arrest on tax-related criminal charges. In those situations, it makes sense to discuss with an experienced tax law attorney, like those at the Robert J. Fedor Esq. LLC law offices in Cleveland and Chicago,all of your legal options.