Final answer:
The claim that a taxpayer cannot deduct the business portion of tolls and parking when using the automatic mileage method is false. Tolls and parking fees are deductible over and above the standard mileage rate for business-related expenses.
Step-by-step explanation:
The statement that a taxpayer who uses the automatic mileage method to compute auto expenses cannot deduct the business portion of tolls and parking is false. When using the automatic mileage method, taxpayers can actually claim additional deductions for tolls and parking fees incurred for business purposes, over and above the standard mileage rate. While the automatic mileage rate is meant to cover the general expenses related to the use of a vehicle for business, such as gas, depreciation, and repairs, tolls and parking are considered separate expenses that can be itemized additionally.