Article Date:
September 2020

Word Count:



What Is the Unpardonable Sin in an IRS Audit?

Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit.


What one record receives special attention? What one record can create a nightmare for you? What one record makes the IRS suspect that you are the keeper of lousy records?


Think of the record people most hate keeping. That’s the one we are talking about. You have probably guessed what that record might be.


Red-Flag Record for the IRS Examiner


Once your audit examination begins, the examiner likes to see this record. If the record is missing or lacking, the IRS examiner knows that your other records probably are lacking, too.


This record—the one you probably hate keeping—is the mileage log on your vehicle or vehicles.


The IRS notes that a taxpayer’s failure to keep a mileage log on vehicles indicates that the activity under examination is not being conducted in a businesslike manner.1


The Courts Crush Taxpayers Who Fail to Keep an Adequate Mileage Log


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