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About Jay Allen Finn, CPA
Expertise
IRS Audits. All Collection Tax problems; specifically but not limited to, delinquent returns, bank levies, liens, garnishments of wages, Also specializing in Offer in Compromise. Limited to 1040/ personal tax issues
Experience
27 years experience as a CPA in the IRS defense area following a position as an IRS Auditor in the oil and gas industries.
Organizations
Texas Society of Certified Public Accountants (Peer Assistance Committee), Houston Chapter of the Texas Society.
Publications
Submit your articles.com
Education/Credentials
BBA - Bachelors of Business Admin., Magna cum laude, Series 6 and 68 - Registered representative, Series 65 - Financial planner.
Certified Public Accountant
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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Mileage Reimbursement
Expert: Jay Allen Finn, CPA
Date: 8/9/2008
Subject: Mileage Reimbursement
Question
Hello,
We are sorry, but Carole Dunton wasn't able to answer your question:
I work for an IT Consulting firm who reimburses the employees for mileage we travel to clients using our own cars but at a rate less than the IRS rate. The company has an office which I believe clears up the question about "principle place of business". It's clear that commuting mileage is not eligible for reimbursement. The owners of the business are trying to craft a clear policy on reimbursement. The question that is on the table involves how many miles the employee should be listing on their reimbursement form. The company has a database of round trip mileage from the office to the client for all our clients which we use to file our reimbursement form. Two scenarios are giving us trouble. 1) A technician leaves their home in the morning and visits a client which is close to their home. After this visit they proceed to the office. Should we put only the short distance from the home to the client on our form because that is the actual business mileage incurred. Normally we put down the round trip mileage from the office to the client. 2) How do we handle visiting multiple clients on one trip before returning to the office? I've reviewed IRS Publication 463 but this document does not address these issues. Does the tax code deal with these scenarios or is it up to the company to design whatever policy they want as long as everyone follows the same rules?
Answer
I WOULD SUGGEST A WRITTEN POLICY IN CONFORMITY WITH A STANDARD PRACTICE. I WOULD SUGGEST THAT THE FIRST PLACE THE WORKER GOES IS THE COMMUTE AND EVERYWHERE ELSE IS BUSINESS AND IF THEY GO TO THE OFFICE, THAN THE RETURN TRIP IS A COMMUTE. THIS IS MY OPINION ONLY. BESIDES THE PUBLICATION, YOU CAN PROCEED TO A BARNES AND NOBLE OR LIBRARY AND SEE WHAT "J. K. LASSER" OR "ERNST AND WHINNY" SAYS ON THE SUBJECT.
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