DOs and DON’Ts for Deducting Meals, Entertainment and Travel

Valuable Information for Deducting Business Expenses

GordonCPA's Blog

If you’re claiming a deduction for meals, entertainment, auto or travel expenses, expect the IRS to closely review it. Too often, taxpayers have incomplete documentation or try to re-create records months (or years) later. In doing so, they often fail to meet the strict substantiation requirements set forth under tax law and by the IRS. Tax auditors are adept at rooting out inconsistencies, omissions and errors in taxpayers’ records, as illustrated by a recent U.S. Tax Court case. (Crawford v. Commissioner, T.C. Memo 2014-156)In 2009, Marcus Octavious Crawford worked as an engineer for AFL Telecommunications. His employer fully reimbursed travel expenses incurred as part of his job. As a side business, Crawford also sold nutritional supplements and recruited new salespeople for a company called Vemma. He reported wage and salary income of $52,659 from AFL Telecommunications on his 2009 personal tax return, as well as gross receipts of $1,183…

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