10 Mileage Tracking Mistakes That Trigger IRS Audits
Every year, thousands of self-employed workers lose mileage deductions - worth $2,000-$10,000 - because of easily avoidable mistakes. Here are the top 10 red flags that trigger IRS audits, and how to fix them.
Mistake #1: Claiming 100% Business Use
The Red Flag: Your mileage log shows you drove 18,000 miles for work and 0 miles personally.
Why It's Bad: The IRS knows you use your car for groceries, doctor visits, and social activities. Claiming 100% business use screams "audit me."
The Fix: Be realistic. Most self-employed drivers are 60-80% business use. Track ONLY your work shifts, not total odometer miles.
Mistake #2: Round Numbers
The Red Flag: You claim exactly 15,000 miles, or 10,000 miles, or 20,000 miles.
Why It's Bad: Real mileage logs show precise numbers like 14,873 or 9,234. Round numbers suggest you guessed instead of tracking.
The Fix: Use photo-based tracking (MileageSnaps) or GPS apps that capture exact odometer readings. Precision shows you kept real records.
Mistake #3: No Supporting Documentation
The Red Flag: You claim $9,450 in mileage deductions (13,500 miles × $0.70) but have no mileage log.
Why It's Bad: IRS Publication 463 requires "adequate records." Saying "I drove a lot for Uber" without proof means $0 deduction.
The Fix: Keep a mileage log with dates, starting/ending locations, miles, and business purpose. Photo evidence (odometer pics) is even better.
Mistake #4: Backdating Your Log
The Red Flag: On April 10 (right before tax deadline), you create a mileage log for all of last year.
Why It's Bad: The IRS wants "contemporaneous" records - created at or near the time of each trip. Reconstructed logs are weak evidence.
The Fix: Track mileage in real-time. If you forgot, note in your log: "Reconstructed from calendar and bank records." But don't do this again in 2025!
Mistake #5: Deducting Commuting Miles
The Red Flag: You drive from home to your office every day and deduct those miles.
Why It's Bad: Commuting to a "regular workplace" is NEVER deductible, even if you're self-employed.
The Fix: Only deduct miles AFTER you reach your first business location. If you work from home (your principal place of business), trips to clients ARE deductible.
Mistake #6: Claiming Personal Trips as Business
The Red Flag: Your GPS log shows a Saturday trip to the mall labeled "business meeting."
Why It's Bad: If audited, the IRS will ask for proof of the business purpose. No proof = deduction denied + penalties.
The Fix: Only log trips with a clear business purpose. Add notes like "Met with client Smith at Starbucks - contract negotiation."
Mistake #7: Not Tracking Trips Under 10 Miles
The Red Flag: You skip logging short trips because "it's not worth it."
Why It's Bad: Those 5-mile trips add up: 200 short trips × 5 miles × $0.70 = $700 in lost deductions.
The Fix: Track EVERY business trip. With MileageSnaps, it takes 5 seconds to snap start/end photos - no excuse to skip short trips.
Mistake #8: Mixing Methods (Standard + Actual)
The Red Flag: You claim standard mileage ($0.70/mile) AND deduct gas receipts.
Why It's Bad: You can't do both! The standard rate already includes gas, maintenance, depreciation, etc.
The Fix: Pick ONE method: standard mileage OR actual expenses. (Standard is usually better for high-mileage drivers.)
Mistake #9: No Start/End Odometer Readings
The Red Flag: Your log says "drove to 3 client meetings, 45 miles total" but doesn't show odometer readings.
Why It's Bad: The IRS prefers logs with starting/ending odometer to verify accuracy. Without them, your "45 miles" looks like a guess.
The Fix: Photo-based tracking solves this. Every shift has a start photo (odometer 45,230) and end photo (45,275).
Mistake #10: Deducting Miles You Didn't Drive
The Red Flag: You claim 50 miles for a "client meeting" but your GPS shows you only drove 30 miles.
Why It's Bad: Inflating mileage is fraud. If caught, you'll owe back taxes + 20-75% penalties + possible criminal charges.
The Fix: Be honest. Track only the miles you actually drove. Photo evidence protects you from accidentally over-claiming.
How to Avoid These Mistakes
- Use photo-based tracking: MileageSnaps creates audit-proof logs automatically
- Track in real-time: Log each shift when it happens, not months later
- Be conservative: When in doubt, DON'T claim a trip as business
- Add notes: Write why each trip was necessary ("Met client to discuss Q1 contract")
- Keep backups: Export your mileage log monthly (CSV or PDF)
Bottom line: The IRS is looking for honest mistakes, not perfection. But sloppy record-keeping costs you thousands in denied deductions. Start 2025 with clean, accurate mileage tracking.