How GPS Tracking Can Save You When the IRS Comes Knocking

How GPS Tracking Can Save You When the IRS Comes Knocking

Lets talk about every businesss favorite subject: The Government. Wehave been surprised because when many companies that work with our vehicle tracking service tell us that our solution has helped them outand in some cases, saved their ass(ets)during nerve-racking IRS inquiries and even full-blown audits. The more weve seriously what our system does, the more sense our customers thank you calls after theyve been audited make. Heres why. As you probably know, IRS agents dont only go after modern-day Al Capones and businesses that just-plain refuse to pay their taxes. The agency also takes a random lottery approach to companies who havent done anything shadylike yours. As youve probably also heard (or learned firsthand), the IRS takes a specific interest in vehicle-based companies, because they log a lot of milesoften across state lines. Of course, the IRS wants to make positive both it and any relevant state taxation agencies are getting paid every one of the taxes theyre owed for fuel and driver hours worked. So if the government pulls up your file, even if youve never done anything wrong, nonetheless might decide in order to consider a microscope to your tax returns. What's going to you do after that? Well, if youve got ClearPathGPS trackers installed on your trucks and trailers, heres how you can protect your company from some pretty difficult challenges the irs likes to make against fleet-based businesses like yours. 4 Ways GPS Tracking Helps With IRS Audits 1. Automated IFTA audit report group. Under Escort Website – A must have for Independent escorts , all licensed cars subject to IFTA taxation are need to maintain records that, according to IFTAs Procedures Manual: Shall be adequate to enable the beds base jurisdiction [read: the irs or a state tax agency] to make sure that the distances traveled and fuel purchased by the licensee for the period under the audit and to measure the accuracy of the licensees distance and fuel accounting systems for its navy. The IRS could demand to see proof of your fleets total miles driven in a given year, the quantity of miles driven each state, the location of any of your vehicles at a period during that year, and it mat be the specific route of any vehicles travel. If the IRS asks for these records and your company doesnt have detailed records of each of iteven if you havent done anything wrongthis could create real problems for ones business. But with GPS, you automatically track all of this data on your vehicles (including any trailers or assets with GPS trackers), so you have proof of understanding youve provided on your tax returns. 2. Mileage tracking and recording. Unless you have your drivers log their miles for every single trip, or someone at your company takes readings of of your vehicles odometers at the start and end every and every trip (and perhaps even photos, for evidence), chances are it is important to estimate on your fleets total mileage when preparing your taxes. But of course that wont satisfy a curious IRS agent in your office, asking with the full accounting of where each of one's drivers traveled during the tax year in question, and could breakdown of your vehicles miles logged for every day that year. Luckily, when you have GPS trackers attached with your fleet, very well be automatically logging and recording that info for your companyand making it on the market anytime online via your GPS dashboard. Take that, nosy IRS agent! 3. Timecard logging and verification. Heres another area where the tax auditors like to catch businesses. As you know, its demanding keeping perfect records of your drivers hours worked, because theyre out on field and tracking the moment they start and end their work day isnt always clear-cut. But when youve rolled out the GPS system, you'll be tracking your vehicles movements at all times, and our system will be effectively generating a virtual timecard of every one of your drivers mobility. Many of our customers use these virtual timecards so as to simplify billing and reduce needlessly overpaying field service techs who over-estimate their hours now and as well as. But they can also come in handy when the IRS comes knocking and wants to know if youve been under-estimating may hours your drivers worked during the tax year in question. 4. Geofence reports verifying vehicle parts. The Mythical Escort Community -button area that auditors like to dig into with vehicle-based businesses is when, where, and how often their vehicles drove over state lines. Remember that IFTA aims to help reconcile the tax bills that businesses might owe to many state tax agencies for the miles their vehicles traveled through each of the aforementioned states. If the IRS demands to know not only how many miles one of the trucks drove in the given year, but also how many of us miles it drove in each state, what documentation certain be able to create? With GPS, you could have not only GPS tracking to track a vehicles location in real-time while its located on the road, furthermore geofencing capabilityto prove that it was in fact within specific geographical area for a given period. Data files can arrive quite handy if any IRS agent demands you prove specific of your trucks could not cross a state line during a specific timeframe. Protecting AsiaEscortTours.com – My new Asia Escort Tours website from the IRS: An additional Reason to sign up for Vehicle Tracking (As your current products needed a different.)