What IRS publication has regulations on employee reimbursements and travel & expense reports?
“There are a couple of IRS publications that lay out the guidelines for business expense reimbursement, including what are acceptable expenses and what documentation is necessary to prove the charges under an accountable plan. If there is not proper documentation, the IRS will disallow the deduction for the business as it relates to the tax records. Part of the definition of an accountable plan is that there must be a reasonable accounting of expenses. If there is no reasonable accounting, then the IRS views it as a nonaccountable plan. IRS Revenue Ruling 2006-56 (our thanks to Rosie Nicholson, assistant controller for TD Industries) addresses this. The ruling says where an expense allowance arrangement has no mechanism or process to track allowances paid and routinely pays per diem allowances in excess of the federal per diem rates without requiring actual substantiation of all the expenses or repayment of the excess amount, all payments made under the arrangement will be treated as m
Related Questions
- What expense object code should be used to record taxable meal reimbursements for employee travel without an overnight stay or substantial rest period?
- What kinds of reports are available for employee reimbursements? Are employee reimbursements broken down on a predictive report?
- Can I request travel expense claims of an employee or councilor?
