Your client is a real estate agent who was audited two years ago by the IRS. During the audit he was unable to substantiate the 20 000 business miles driven or the $9,500 conference he attended in Hawaii, He has assessed the tax and a penalty. This year he comes to you to do his taxes, bringing a sheet that shows business miles driven broken down by day.

You are surprised that this year his sheet says that he drove 32,000 business miles out of a total of 35,000 total miles, even though the real estate market was slow and his income was down 50%. In addition, he brought a program from a real estate convention in Miami and another spreadsheet with the costs incurred, including airfare, hotel, and meals.

Keeping in mind that your client was audited and unable to substantiate the expenses in the audit, you ask if his records are better, and he says, "Of course." When you ask how they differ, he winks and says that he is "smarter" now. 
1) How would you handle this situation? 
2) Would the auto бdeduction make a difference if he owned three cars?