I’ve been doing a good amount of business travel lately. My employer reimburses mileage and provides a per diem. However, both those amounts are below the standard IRS rates. For instance, the IRS mileage deduction is {content}.485 per mile, while my company reimburses {content}.405 cents per mile. The IRS per diem for the region I travel to is / day while my company pays / day.
When I file my 2007 taxes, can I claim the difference between the allowable and actual reimbursements and an unreimbursed business expense?
I travelled 2,000 miles for business, so was reimbursed 0. At the IRS mileage rate, that would have been 0. Can I claim the 0 as an unreimbursed business expense? Is the scenario different for mileage and the per diem?

I’d prefer answers from folks who have actually faced the situation (or tax specialists) rather than speculation. Many thanks!

We’ve used the same tax preparer for many years. Nothing fancy, one of the big name franchise’s. Without any major deductions or audit flags we’ve been selected for an IRS audit. My wife and I are both W-2 workers and collectively earn just under 0K/yr, claim standard deductions (mortgage interest, kids (no EIC), nominal business expenses — less than 00/yr for business supplies, lunches, etc… and some mileage for business travel in a car that I own, (less than 10K miles per year and I’m in B2B sales), no investment losses or non-standard or "creative" deductions). Just seems so odd that we’d be selected for an audit. Is my tax preparer accountable to me for this audit? Is selection totally arbitrary or, are certain flags looked for?
Appreciate all the feedback. Yes, business expenses are unreimbursed, mileage claimed is mileage not paid by my employer for business travel in my own vehicle. And, perhaps "liable" was a poor choice of words. I think "accountable" is probably better. Just seems we pay a fair premium for sound advice in completing our returns and advising us on what we should include and what not to include (so to speak). I’d like to believe I’ve paid for a bit more than someone simply filling in the blanks with the info I’ve provided. Wouldn’t be much of a service if that were the case.

My employer has recommended that I form an LLC and be paid as an independent contractor via 1099. I am married, we filed jointly last year. We are located in IL. I work out of my home office, use my vehicle for business travel sometimes and entertain clients from time to time with dinners, etc. I only have healthcare with my employer and no other benefits and I am told they would continue to provide the healthcare. I invest in my own IRA with no employer benefits. I am trying to figure out if I will actually pay less taxes via more deductions (currently not deducting anything but the standard). I am also in graduate school part time on student loans with no employer assistance.
So theoretically, if I was previously salary of 75k I should ask for an increase to cover the extra self employment tax i will incur?

the line of work is construction / real estate development consulting.
I appreciate all of your input! It is all very helpful. Thank you.
Can anyone explain how this would change if I formed a Corporation instead?

My company (located in NY) is now making us keep track of any days that we work outside of New York State. If, for example, I go to a 1 day business meeting in Massachusetts they deduction Massachusetts income tax from my wages for one day. If I want to get that money back at the end of the year, I have to file a tax return with Massachusetts. They are doing this for all business travel to all states.

He has 140 people from 20 countries meeting to discuss a high school curriculum to train disadvantaged rural youth to plant a vegetable garden and then show them how to sell tomatos. I could do that out of the back of my car. He has a noble prize winner consulting with him on replacing kerosene and paraffin lanterns with solar lighting devices to combat global warming. What a joke! I could reduce green house gases more than that just by walking around the block. Visa is going to teach 10 million people financial literacy. I think they will learn plenty about finances when they find themselves trapped in a debt spiral.
This whole Clinton Global Initiative seems like a scam to me. It sounds good on paper but when you look at the details there is nothing there. It seems like another way for companies to give themselves big pats on the back while claiming business travel tax deductions. Thoughts?

http://www.clintonglobalinitiative.org/NETCOMMUNITY/Page.aspx?pid=2154&srcid=1399

He has 140 people from 20 countries meeting to discuss a high school curriculum to train disadvantaged rural youth to plant a vegetable garden and then show them how to sell tomatos. I could do that out of the back of my car. He has a noble prize winner consulting with him on replacing kerosene and paraffin lanterns with solar lighting devices to combat global warming. What a joke! I could reduce green house gases more than that just by walking around the block. Visa is going to teach 10 million people financial literacy. I think they will learn plenty about finances when they find themselves trapped in a debt spiral.
This whole Clinton Global Initiative seems like a scam to me. It sounds good on paper but when you look at the details there is nothing there. It seems like another way for companies to give themselves big pats on the back while claiming business travel tax deductions. Thoughts?

http://www.clintonglobalinitiative.org/NETCOMMUNITY/Page.aspx?pid=2154&srcid=1399

I stayed at a hotel for a continuing education course. Do I report that as part of my educational expense deduction, or as a business travel expense on my tax return? Thanks!

I bought tickets in late Dec 2006 for a business trip in early 2007. Are the tickets a deduction for 2006 when I paid for them, or in 2007 when the actual business travel took place.