News & Articles
If you're reporting travel and entertainment (T&E) expenses on your tax return and you're audited, there's a good chance an agent will take a hard look at those items.
Reimbursing and substantiating business travel expenses can be a cumbersome, time-consuming process. Here's how it traditionally works. Employees collect receipts as they travel and maintain records that note the time, place and business purpose of each expenditure. Then, they submit monthly expense reports that must be approved by their supervisors. Sometimes, there are administrative delays, if documentation is incomplete or a supervisor questions the business purpose (or reasonableness) of an expense item. Employers must hold on to all this documentation for several years in case the IRS inquires about business travel deductions.
Are you planning a vacation this summer? Two-thirds of Americans have at least one leisure trip planned this summer, according to a recent poll by Harris Interactive, a Nielson Company. That's 2 percentage points higher than last year's poll and 6 points higher than 2012. AAA expects 2014 to be the busiest travel season since 2000, thanks to economic improvement and pent-up demand.