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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com.

Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

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Tax Law (Questions About Taxes) - Mileage taxed without 1099 form

Expert: John Stancil, CPA - 11/6/2009

Question
I just got a letter from the IRS saying I owe $711 plus a $59 late fee on $2543 of "non-employee compensation" from a former business I worked at in 2007. I called the business and found out that amount was my mileage for the year. They said they mailed me a 1099 form, but I did not get it so it was not filed with my tax return that year. I did get a W2 from them.

I did get paid per mile once a month. My question is, is this money taxable and I owe it all or was not filing the 1099 the issue? I can get the form from my former employer still, will that help me in any way?

I appreciate you taking the time to help me.

Answer
Jim,

Thanks for your question. The form itself would not help, as the IRS has a copy already.

If you submitted mileage reports and were reimbursed at the IRS rate or lower, the mileage reimbursement is not taxable and a 1099 should not have been issued.

If you were paid a flat allowance per month for mileage, such as $200, and did not account to the company for the mileage, it is taxable, but should have been included on your W-2 form. In this event, you can deduct the mileage as a employee business expense (miscellaneous itemized deductions) on Schedule A. However, you can only deduct the amount that exceeds 2% of your adjusted gross income.

Hope this helps.

John Stancil, CPA

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