# How not to get audited?



## burgerflipper (Jun 23, 2017)

I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?

underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)

Or overestimate, resulting in my Suspiciously requesting a Refund later on?

Which is less likely to be audited? That is all i care about here.

Wonder whether anyone here has sage wisdom to offer?


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## Pax Collector (Feb 18, 2018)

burgerflipper said:


> Wonder whether anyone here has sage wisdom to offer?


And that's where you're mistaken.

If you play your cards right you won't owe anything. Hopefully you have kept track of your miles (Standard deduction) or have all your receipts handy (Itemized deductions).


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## burgerflipper (Jun 23, 2017)

Pax Collector said:


> And that's where you're mistaken.
> 
> If you play your cards right you won't owe anything. Hopefully you have kept track of your miles (Standard deduction) or have all your receipts handy (Itemized deductions).


But im in new york city. The mileage rate here is (or was) $1.17. Traffic is so slow here that it takes us 10 minutes to cover that mile. So we make like $3 for every mile we drive. So most of us have to pay taxes.

I guess maybe this isnt the best place to ask this question then.


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## Pax Collector (Feb 18, 2018)

@UberTaxPro Care to shed some light?


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## tohunt4me (Nov 23, 2015)

burgerflipper said:


> I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?
> 
> underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)
> 
> ...


I got audited once and they Mailed me a check.

Being Audited isnt always bad.


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## Ssgcraig (Jul 8, 2015)

burgerflipper said:


> I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?
> 
> underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)
> 
> ...


Just do not have anything that flags your return. Something like you made $40K and are claiming 100K miles, flag.


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## Ubergaldrivet (Feb 6, 2019)

burgerflipper said:


> I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?
> 
> underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)
> 
> ...


I have a lot, but as an ex irs agent your theory makes me laugh. Google safe Harbor


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## Older Chauffeur (Oct 16, 2014)

Try asking @UberTaxPro :
https://uberpeople.net/threads/tax-time-ask-me-anything-about-ride-share-taxes.314261/


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## UberTaxPro (Oct 3, 2014)

burgerflipper said:


> I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?
> 
> underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)
> 
> ...


You should change your strategy of trying to avoid an audit to filing an accurate tax return. The IRS audits for various reasons including random audits so you can't really succeed using your avoid audit strategy.
When you send in your extension you should include a payment of what you'll estimate you'll owe. If you can't come up with an estimate at all you should at least send in the amount you paid in tax for 2017.


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## FLKeys (Dec 27, 2018)

NY State taxes suck, I kid worked there this past summer for 3 months, what a tax nightmare it is turning into. He already told the company he works for he does not ever plan on going to NY again for the summer season. Since UberTax Pro answered there is no reason for me to reply to the original question, that is pretty much what I would have suggested except the last part about sending in what you paid in 2017. After reading that it makes sense to help protect you against under payment penalties.


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## AuxCordBoston (Dec 3, 2016)

I


burgerflipper said:


> I think I'll be filing an extension this year and my primary interest is not to get audited. I dont know how much i owe in taxes so i will have to guess. What should i do?
> 
> underestimate how much i owe - depriving the poor IRS of funds for a couple of months? (Abd yes, i know there are penalties but those dont bother me so much)
> 
> ...


I take the extension every yr and file October 15th. That's how I roll.


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## burgerflipper (Jun 23, 2017)

UberTaxPro said:


> You should change your strategy of trying to avoid an audit to filing an accurate tax return. The IRS audits for various reasons including random audits so you can't really succeed using your avoid audit strategy.
> When you send in your extension you should include a payment of what you'll estimate you'll owe. If you can't come up with an estimate at all you should at least send in the amount you paid in tax for 2017.


Thank you for the sage reply @UberTaxPro

fyi just want to say - my tax returns are accurate just i dont have all my gas receipts, and i cant prove how little.i use my car for.personal use. Other things like that. Plus being audited is a waste of time. So trying to avoid it.


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## UberTaxPro (Oct 3, 2014)

burgerflipper said:


> Thank you for the sage reply @UberTaxPro
> 
> fyi just want to say - my tax returns are accurate just i dont have all my gas receipts, and i cant prove how little.i use my car for.personal use. Other things like that. Plus being audited is a waste of time. So trying to avoid it.


If you're using the SMR for vehicle expenses you don't need gas receipts. You just need to be able to prove business use of your vehicle not personal


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## 80sDude (Jul 20, 2015)

IRS audits uber drivers. Now that's a headline.


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## burgerflipper (Jun 23, 2017)

Ubergaldrivet said:


> I have a lot, but as an ex irs agent your theory makes me laugh. Google safe Harbor


Not sure i understand. What theory? Safe harbor - doesnt seem to be rax related?


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## Alantc (Jun 15, 2018)

Pax Collector said:


> And that's where you're mistaken.
> 
> If you play your cards right you won't owe anything. Hopefully you have kept track of your miles (Standard deduction) or have all your receipts handy (Itemized deductions).


Like a dummy I didn't know where the miles were for the year that hoober keeps on us I ended up putting 49,000 when they said I did 26000 do you think 49,000 miles a year driving for Uber was too many to file .and i only put down 10,000 for the fees which was really 14,000


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## Pax Collector (Feb 18, 2018)

Alantc said:


> Like a dummy I didn't know where the miles were for the year that hoober keeps on us I ended up putting 49,000 when they said I did 26000 do you think 49,000 miles a year driving for Uber was too many to file .and i only put down 10,000 for the fees which was really 14,000


It depends on how much money you made. 49,000 miles isn't too many to file as long as you have your mileage log to back it up.


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## UberTaxPro (Oct 3, 2014)

burgerflipper said:


> Not sure i understand. What theory? Safe harbor - doesnt seem to be rax related?


the "safe harbor" in this context refers to paying 100% of your previous years taxes. If your income is above a certain amount you'll have to pay 110% to satisfy the safe harbor requirement. That's my guess anyway!


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## Alantc (Jun 15, 2018)

Pax Collector said:


> It depends on how much money you made. 49,000 miles isn't too many to file as long as you have your mileage log to back it up.


$40k no just made a good guess i drive at least 100 plus a night around 4k a month so that's how i came up with 49 k a year driving


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## Pax Collector (Feb 18, 2018)

Alantc said:


> $40k no just made a good guess i drive at least 100 plus a night around 4k a month so that's how i came up with 49 k a year driving


Yeah, problem is I don't think you have the mileage log to back up your claim. The only proof you'll have is Uber's statement with a significantly lower miles driven.


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## nickd8775 (Jul 12, 2015)

It's rare to get audited, especially if you make under six figures.


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## Alantc (Jun 15, 2018)

Pax Collector said:


> Yeah, problem is I don't think you have the mileage log to back up your claim. The only proof you'll have is Uber's statement with a significantly lower miles driven.


Does uber send milage in to IRS


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## Pax Collector (Feb 18, 2018)

Alantc said:


> Does uber send milage in to IRS


I believe the only thing they send is earnings related.


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## Alantc (Jun 15, 2018)

Pax Collector said:


> I believe the only thing they send is earnings related.


Thank you, thats good, i feel a little better knowing that


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## Urbanappalachian (Dec 11, 2016)

that sucks, my total deductible standard mileage is about 18,000 miles. That's probably why I think I owe less this year, might even be due some coin.



burgerflipper said:


> But im in new york city. The mileage rate here is (or was) $1.17. Traffic is so slow here that it takes us 10 minutes to cover that mile. So we make like $3 for every mile we drive. So most of us have to pay taxes.
> 
> I guess maybe this isnt the best place to ask this question then.


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## FLKeys (Dec 27, 2018)

Urbanappalachian said:


> that sucks, my total deductible standard mileage is about 18,000 miles. That's probably why I think I owe less this year, might even be due some coin.


I am happy that I am making a taxable profit, what would really suck is if I drove the same number of miles I did last year and did not make a taxable profit. Yes Uncle Sam took a decent chunk, but at least I had more after that then if I did not make a taxable profit.


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## Ubergaldrivet (Feb 6, 2019)

Alantc said:


> Like a dummy I didn't know where the miles were for the year that hoober keeps on us I ended up putting 49,000 when they said I did 26000 do you think 49,000 miles a year driving for Uber was too many to file .and i only put down 10,000 for the fees which was really 14,000


They take that number from Uber's document which is filed federally. That number alone will get you flagged for audit!!


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## Older Chauffeur (Oct 16, 2014)

Ubergaldrivet said:


> They take that number from Uber's document which is filed federally. That number alone will get you flagged for audit!!


If Uber doesn't issue a 1099, what document would they file with the IRS? And where on the 1099 is mileage shown?


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## Wildgoose (Feb 11, 2019)

AuxCordBoston said:


> I
> 
> I take the extension every yr and file October 15th. That's how I roll.


Doing this way, you need to pay interest on how much you owe to IRS. Actually, we are supposed to pay taxes in every quarter. If we do tax file in April, we are still owing interests on the past three tax payment. You are extending all four payments to October. Beware of interests amount you are paying to IRS.



burgerflipper said:


> But im in new york city. The mileage rate here is (or was) $1.17. Traffic is so slow here that it takes us 10 minutes to cover that mile. So we make like $3 for every mile we drive. So most of us have to pay taxes.
> 
> I guess maybe this isnt the best place to ask this question then.


In your case, you should consider to invest your car 100% on your business. Open an LLC company. You can put each and every expenses on your car such as gas, car wash, things you purchased, car fixed, etc. Moreover you can also have the depreciation deduction of the car. 
BUT YOU CAN'T CLAIM MILEAGE DEDUCTION IN THIS CASE.


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## Uberbrent (Mar 22, 2016)

Original poster...why don’t you seek tax advice from a professional accountant who will then stand behind his work and represent you if you are audited. If you take advice anywhere else, you have no recourse.


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## Ubergaldrivet (Feb 6, 2019)

Older Chauffeur said:


> If Uber doesn't issue a 1099, what document would they file with the IRS? And where on the 1099 is mileage shown?


The document I received had the mileage on it


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## Uberbrent (Mar 22, 2016)

Ubergaldrivet said:


> The document I received had the mileage on it


If you only use that mileage, you aren't including mileage to the car wash or gas station in preparation to drive. It only includes the mileage when you are involved with a passenger. If you drive to the airport to start, that mileage wouldn't be included either. If it's all you have, then use it as nothing else can be proved without logging your miles.


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## Older Chauffeur (Oct 16, 2014)

Ubergaldrivet said:


> The document I received had the mileage on it


Was the document a 1099, or was it Uber's explanation of what they collected and the fees they kept? Does it say on the form that a copy is filed with the IRS?


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