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2009 freetaxusa Publication 901 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2009 freetaxusa How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 2009 freetaxusa By selecting the method that is best for you, you will have quick and easy access to tax help. 2009 freetaxusa Free help with your tax return. 2009 freetaxusa Free help in preparing your return is available nationwide from IRS-certified volunteers. 2009 freetaxusa The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. 2009 freetaxusa The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2009 freetaxusa Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2009 freetaxusa Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 2009 freetaxusa To find the nearest VITA or TCE site, visit IRS. 2009 freetaxusa gov or call 1-800-906-9887 or 1-800-829-1040. 2009 freetaxusa As part of the TCE program, AARP offers the Tax-Aide counseling program. 2009 freetaxusa To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2009 freetaxusa aarp. 2009 freetaxusa org/money/taxaide or call 1-888-227-7669. 2009 freetaxusa For more information on these programs, go to IRS. 2009 freetaxusa gov and enter “VITA” in the search box. 2009 freetaxusa Internet. 2009 freetaxusa You can access the IRS website at IRS. 2009 freetaxusa gov 24 hours a day, 7 days a week to: E-file your return. 2009 freetaxusa Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 2009 freetaxusa Check the status of your 2012 refund. 2009 freetaxusa Go to IRS. 2009 freetaxusa gov and click on Where’s My Refund. 2009 freetaxusa Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2009 freetaxusa If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2009 freetaxusa Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2009 freetaxusa Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. 2009 freetaxusa Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2009 freetaxusa So in a change from previous filing seasons, you won't get an estimated refund date right away. 2009 freetaxusa Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2009 freetaxusa You can obtain a free transcript online at IRS. 2009 freetaxusa gov by clicking on Order a Return or Account Transcript under “Tools. 2009 freetaxusa ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. 2009 freetaxusa You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. 2009 freetaxusa Download forms, including talking tax forms, instructions, and publications. 2009 freetaxusa Order IRS products. 2009 freetaxusa Research your tax questions. 2009 freetaxusa Search publications by topic or keyword. 2009 freetaxusa Use the Internal Revenue Code, regulations, or other official guidance. 2009 freetaxusa View Internal Revenue Bulletins (IRBs) published in the last few years. 2009 freetaxusa Figure your withholding allowances using the IRS Withholding Calculator at www. 2009 freetaxusa irs. 2009 freetaxusa gov/individuals. 2009 freetaxusa Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. 2009 freetaxusa gov by typing Alternative Minimum Tax Assistant in the search box. 2009 freetaxusa Sign up to receive local and national tax news by email. 2009 freetaxusa Get information on starting and operating a small business. 2009 freetaxusa Phone. 2009 freetaxusa Many services are available by phone. 2009 freetaxusa Ordering forms, instructions, and publications. 2009 freetaxusa Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). 2009 freetaxusa You should receive your order within 10 days. 2009 freetaxusa Asking tax questions. 2009 freetaxusa Call the IRS with your tax questions at 1-800-829-1040. 2009 freetaxusa Solving problems. 2009 freetaxusa You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). 2009 freetaxusa An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 2009 freetaxusa Call your local Taxpayer Assistance Center for an appointment. 2009 freetaxusa To find the number, go to www. 2009 freetaxusa irs. 2009 freetaxusa gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2009 freetaxusa TTY/TDD equipment. 2009 freetaxusa If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 2009 freetaxusa The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. 2009 freetaxusa These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2009 freetaxusa gsa. 2009 freetaxusa gov/fedrelay. 2009 freetaxusa TeleTax topics. 2009 freetaxusa Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 2009 freetaxusa Checking the status of your 2012 refund. 2009 freetaxusa To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). 2009 freetaxusa Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2009 freetaxusa If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2009 freetaxusa Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2009 freetaxusa Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2009 freetaxusa Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2009 freetaxusa Evaluating the quality of our telephone services. 2009 freetaxusa To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 2009 freetaxusa One method is for a second IRS representative to listen in on or record random telephone calls. 2009 freetaxusa Another is to ask some callers to complete a short survey at the end of the call. 2009 freetaxusa Walk-in. 2009 freetaxusa Some products and services are available on a walk-in basis. 2009 freetaxusa Products. 2009 freetaxusa You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2009 freetaxusa Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2009 freetaxusa Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 2009 freetaxusa Services. 2009 freetaxusa You can walk in to your local TAC most business days for personal, face-to-face tax help. 2009 freetaxusa An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2009 freetaxusa If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 2009 freetaxusa No appointment is necessary—just walk in. 2009 freetaxusa Before visiting, check www. 2009 freetaxusa irs. 2009 freetaxusa gov/localcontacts for hours of operation and services provided. 2009 freetaxusa If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. 2009 freetaxusa You can leave a message and a representative will call you back within 2 business days. 2009 freetaxusa All other issues will be handled without an appointment. 2009 freetaxusa To call your local TAC, go to www. 2009 freetaxusa irs. 2009 freetaxusa gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2009 freetaxusa Mail. 2009 freetaxusa You can send your order for forms, instructions, and publications to the address below. 2009 freetaxusa You should receive a response within 10 days after your request is received. 2009 freetaxusa Internal Revenue Service 1201 N. 2009 freetaxusa Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. 2009 freetaxusa The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2009 freetaxusa Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 2009 freetaxusa TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. 2009 freetaxusa Remember, the worst thing you can do is nothing at all. 2009 freetaxusa TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. 2009 freetaxusa You face (or your business is facing) an immediate threat of adverse action. 2009 freetaxusa You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. 2009 freetaxusa If you qualify for help, they will do everything they can to get your problem resolved. 2009 freetaxusa You will be assigned to one advocate who will be with you at every turn. 2009 freetaxusa TAS has offices in every state, the District of Columbia, and Puerto Rico. 2009 freetaxusa Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. 2009 freetaxusa And its services are always free. 2009 freetaxusa As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 2009 freetaxusa The TAS tax toolkit at www. 2009 freetaxusa TaxpayerAdvocate. 2009 freetaxusa irs. 2009 freetaxusa gov can help you understand these rights. 2009 freetaxusa If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. 2009 freetaxusa irs. 2009 freetaxusa gov/advocate. 2009 freetaxusa You can also call the toll-free number at 1-877-777-4778. 2009 freetaxusa Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. 2009 freetaxusa These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2009 freetaxusa gsa. 2009 freetaxusa gov/fedrelay. 2009 freetaxusa TAS also handles large-scale or systemic problems that affect many taxpayers. 2009 freetaxusa If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. 2009 freetaxusa irs. 2009 freetaxusa gov/advocate. 2009 freetaxusa Low Income Taxpayer Clinics (LITCs). 2009 freetaxusa Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 2009 freetaxusa Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 2009 freetaxusa These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. 2009 freetaxusa Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 2009 freetaxusa For more information and to find a clinic near you, see the LITC page on www. 2009 freetaxusa irs. 2009 freetaxusa gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 2009 freetaxusa This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. 2009 freetaxusa Free tax services. 2009 freetaxusa Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 2009 freetaxusa Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 2009 freetaxusa The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 2009 freetaxusa The majority of the information and services listed in this publication are available to you free of charge. 2009 freetaxusa If there is a fee associated with a resource or service, it is listed in the publication. 2009 freetaxusa Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 2009 freetaxusa DVD for tax products. 2009 freetaxusa You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 2009 freetaxusa Prior-year forms, instructions, and publications. 2009 freetaxusa Tax Map: an electronic research tool and finding aid. 2009 freetaxusa Tax law frequently asked questions. 2009 freetaxusa Tax Topics from the IRS telephone response system. 2009 freetaxusa Internal Revenue Code—Title 26 of the U. 2009 freetaxusa S. 2009 freetaxusa Code. 2009 freetaxusa Links to other Internet-based tax research materials. 2009 freetaxusa Fill-in, print, and save features for most tax forms. 2009 freetaxusa Internal Revenue Bulletins. 2009 freetaxusa Toll-free and email technical support. 2009 freetaxusa Two releases during the year. 2009 freetaxusa – The first release will ship the beginning of January 2013. 2009 freetaxusa – The final release will ship the beginning of March 2013. 2009 freetaxusa Purchase the DVD from National Technical Information Service (NTIS) at www. 2009 freetaxusa irs. 2009 freetaxusa gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). 2009 freetaxusa Prev Up Next Home More Online Publications
Statement by IRS Commissioner John Koskinen on The Fiscal Year 2015 Budget
The Fiscal Year 2015 Budget proposal is a critical step forward in order for us to improve vital taxpayer services and enforcement efforts. Funding the IRS at this level will be a good investment for the nation, helping taxpayers get the service they need and strengthening compliance efforts in key areas, including identity theft, refund fraud and offshore compliance. Every dollar invested in IRS enforcement provides a strong return on investment in revenue collection, plus an added protection in deterring potential fraud. It also halts the decline in key enforcement personnel, and allows the agency to again invest in necessary basic infrastructure and training. In the meantime, we continue looking for more efficiencies to get the most out of every dollar of the budget.
The Fiscal Year 2015 Budget will put a stop to significant declines in taxpayer service over the past four years. We are doing everything we can to maximize our services with our current resources, and IRS employees are working hard to minimize delays and deliver as much service as possible. However, it’s clear we need to do more to help taxpayers, and the proposed seven percent increase for taxpayer services will be a big help.
Budget In Brief Fiscal Year 2015
Page Last Reviewed or Updated: 04-Mar-2014
The 2009 Freetaxusa
2009 freetaxusa 5. 2009 freetaxusa Recordkeeping Table of Contents How To Prove ExpensesWhat Are Adequate Records? What If I Have Incomplete Records? Separating and Combining Expenses How Long To Keep Records and Receipts Examples of Records If you deduct travel, entertainment, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. 2009 freetaxusa This chapter discusses the records you need to keep to prove these expenses. 2009 freetaxusa If you keep timely and accurate records, you will have support to show the IRS if your tax return is ever examined. 2009 freetaxusa You will also have proof of expenses that your employer may require if you are reimbursed under an accountable plan. 2009 freetaxusa These plans are discussed in chapter 6 under Reimbursements . 2009 freetaxusa How To Prove Expenses Table 5-1 is a summary of records you need to prove each expense discussed in this publication. 2009 freetaxusa You must be able to prove the elements listed across the top portion of the chart. 2009 freetaxusa You prove them by having the information and receipts (where needed) for the expenses listed in the first column. 2009 freetaxusa You cannot deduct amounts that you approximate or estimate. 2009 freetaxusa You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. 2009 freetaxusa You must generally prepare a written record for it to be considered adequate. 2009 freetaxusa This is because written evidence is more reliable than oral evidence alone. 2009 freetaxusa However, if you prepare a record on a computer, it is considered an adequate record. 2009 freetaxusa What Are Adequate Records? You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. 2009 freetaxusa You should also keep documentary evidence that, together with your record, will support each element of an expense. 2009 freetaxusa Documentary evidence. 2009 freetaxusa You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. 2009 freetaxusa Exception. 2009 freetaxusa Documentary evidence is not needed if any of the following conditions apply. 2009 freetaxusa You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. 2009 freetaxusa ( Accountable plans and per diem allowances are discussed in chapter 6. 2009 freetaxusa ) Your expense, other than lodging, is less than $75. 2009 freetaxusa You have a transportation expense for which a receipt is not readily available. 2009 freetaxusa Adequate evidence. 2009 freetaxusa Documentary evidence ordinarily will be considered adequate if it shows the amount, date, place, and essential character of the expense. 2009 freetaxusa For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information. 2009 freetaxusa The name and location of the hotel. 2009 freetaxusa The dates you stayed there. 2009 freetaxusa Separate amounts for charges such as lodging, meals, and telephone calls. 2009 freetaxusa A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information. 2009 freetaxusa The name and location of the restaurant. 2009 freetaxusa The number of people served. 2009 freetaxusa The date and amount of the expense. 2009 freetaxusa If a charge is made for items other than food and beverages, the receipt must show that this is the case. 2009 freetaxusa Canceled check. 2009 freetaxusa A canceled check, together with a bill from the payee, ordinarily establishes the cost. 2009 freetaxusa However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose. 2009 freetaxusa Duplicate information. 2009 freetaxusa You do not have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner. 2009 freetaxusa You do not have to record amounts your employer pays directly for any ticket or other travel item. 2009 freetaxusa However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend. 2009 freetaxusa Timely-kept records. 2009 freetaxusa You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. 2009 freetaxusa A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall. 2009 freetaxusa You do not need to write down the elements of every expense on the day of the expense. 2009 freetaxusa If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely-kept record. 2009 freetaxusa If you give your employer, client, or customer an expense account statement, it can also be considered a timely-kept record. 2009 freetaxusa This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record. 2009 freetaxusa Proving business purpose. 2009 freetaxusa You must generally provide a written statement of the business purpose of an expense. 2009 freetaxusa However, the degree of proof varies according to the circumstances in each case. 2009 freetaxusa If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation. 2009 freetaxusa Example. 2009 freetaxusa If you are a sales representative who calls on customers on an established sales route, you do not have to give a written explanation of the business purpose for traveling that route. 2009 freetaxusa You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. 2009 freetaxusa You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence. 2009 freetaxusa Confidential information. 2009 freetaxusa You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. 2009 freetaxusa However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. 2009 freetaxusa What If I Have Incomplete Records? If you do not have complete records to prove an element of an expense, then you must prove the element with: Your own written or oral statement containing specific information about the element, and Other supporting evidence that is sufficient to establish the element. 2009 freetaxusa If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. 2009 freetaxusa Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. 2009 freetaxusa Documentary evidence can be receipts, paid bills, or similar evidence. 2009 freetaxusa If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. 2009 freetaxusa For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. 2009 freetaxusa Invoices of deliveries establish when you used the car for business. 2009 freetaxusa Table 5-1. 2009 freetaxusa How To Prove Certain Business Expenses IF you have expenses for . 2009 freetaxusa . 2009 freetaxusa THEN you must keep records that show details of the following elements . 2009 freetaxusa . 2009 freetaxusa . 2009 freetaxusa Amount Time Place or Description Business Purpose Business Relationship Travel Cost of each separate expense for travel, lodging, and meals. 2009 freetaxusa Incidental expenses may be totaled in reasonable categories such as taxis, fees and tips, etc. 2009 freetaxusa Dates you left and returned for each trip and number of days spent on business. 2009 freetaxusa Destination or area of your travel (name of city, town, or other designation). 2009 freetaxusa Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. 2009 freetaxusa Relationship: N/A Entertainment Cost of each separate expense. 2009 freetaxusa Incidental expenses such as taxis, telephones, etc. 2009 freetaxusa , may be totaled on a daily basis. 2009 freetaxusa Date of entertainment. 2009 freetaxusa (Also see Business Purpose. 2009 freetaxusa ) Name and address or location of place of entertainment. 2009 freetaxusa Type of entertainment if not otherwise apparent. 2009 freetaxusa (Also see Business Purpose. 2009 freetaxusa ) Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. 2009 freetaxusa For entertainment, the nature of the business discussion or activity. 2009 freetaxusa If the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion, and the identities of the persons who took part in both the business discussion and the entertainment activity. 2009 freetaxusa Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you. 2009 freetaxusa For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal. 2009 freetaxusa Gifts Cost of the gift. 2009 freetaxusa Date of the gift. 2009 freetaxusa Description of the gift. 2009 freetaxusa Transportation Cost of each separate expense. 2009 freetaxusa For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. 2009 freetaxusa Date of the expense. 2009 freetaxusa For car expenses, the date of the use of the car. 2009 freetaxusa Your business destination. 2009 freetaxusa Purpose: Business purpose for the expense. 2009 freetaxusa Relationship: N/A Sampling. 2009 freetaxusa You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. 2009 freetaxusa You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year. 2009 freetaxusa Example. 2009 freetaxusa You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. 2009 freetaxusa There is no other business use of the car, but you and your family use the car for personal purposes. 2009 freetaxusa You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. 2009 freetaxusa Invoices and bills show that your business use continues at the same rate during the later weeks of each month. 2009 freetaxusa Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year. 2009 freetaxusa Exceptional circumstances. 2009 freetaxusa You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you cannot get a receipt. 2009 freetaxusa This applies if all the following are true. 2009 freetaxusa You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records . 2009 freetaxusa You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What If I Have Incomplete Records . 2009 freetaxusa You have presented other evidence for the element that is the best proof possible under the circumstances. 2009 freetaxusa Destroyed records. 2009 freetaxusa If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. 2009 freetaxusa Reasons beyond your control include fire, flood, and other casualties. 2009 freetaxusa Table 5-2. 2009 freetaxusa Daily Business Mileage and Expense Log Name: Odometer Readings Expenses Date Destination (City, Town, or Area) Business Purpose Start Stop Miles this trip Type (Gas, oil, tolls, etc. 2009 freetaxusa ) Amount Weekly Total Total Year-to-Date Separating and Combining Expenses This section explains when expenses must be kept separate and when expenses can be combined. 2009 freetaxusa Separating expenses. 2009 freetaxusa Each separate payment is generally considered a separate expense. 2009 freetaxusa For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. 2009 freetaxusa You must record them separately in your records. 2009 freetaxusa Season or series tickets. 2009 freetaxusa If you buy season or series tickets for business use, you must treat each ticket in the series as a separate item. 2009 freetaxusa To determine the cost of individual tickets, divide the total cost (but not more than face value) by the number of games or performances in the series. 2009 freetaxusa You must keep records to show whether you use each ticket as a gift or entertainment. 2009 freetaxusa Also, you must be able to prove the cost of nonluxury box seat tickets if you rent a skybox or other private luxury box for more than one event. 2009 freetaxusa See Entertainment tickets in chapter 2. 2009 freetaxusa Combining items. 2009 freetaxusa You can make one daily entry in your record for reasonable categories of expenses. 2009 freetaxusa Examples are taxi fares, telephone calls, or other incidental travel costs. 2009 freetaxusa Meals should be in a separate category. 2009 freetaxusa You can include tips for meal-related services with the costs of the meals. 2009 freetaxusa Expenses of a similar nature occurring during the course of a single event are considered a single expense. 2009 freetaxusa For example, if during entertainment at a cocktail lounge, you pay separately for each serving of refreshments, the total expense for the refreshments is treated as a single expense. 2009 freetaxusa Car expenses. 2009 freetaxusa You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. 2009 freetaxusa Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use. 2009 freetaxusa Example. 2009 freetaxusa You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. 2009 freetaxusa You can account for these using a single record of miles driven. 2009 freetaxusa Gift expenses. 2009 freetaxusa You do not always have to record the name of each recipient of a gift. 2009 freetaxusa A general listing will be enough if it is evident that you are not trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. 2009 freetaxusa For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients. 2009 freetaxusa Allocating total cost. 2009 freetaxusa If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. 2009 freetaxusa To do so, you must establish the number of persons who participated in the event. 2009 freetaxusa An allocation would be needed, for example, if you did not have a business relationship with all of your guests. 2009 freetaxusa See Allocating between business and nonbusiness in chapter 2. 2009 freetaxusa If your return is examined. 2009 freetaxusa If your return is examined, you may have to provide additional information to the IRS. 2009 freetaxusa This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed. 2009 freetaxusa THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Table 5-3. 2009 freetaxusa Weekly Traveling Expense and Entertainment Record From: To: Name: Expenses Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 1. 2009 freetaxusa Travel Expenses: Airlines Excess Baggage Bus – Train Cab and Limousine Tips Porter 2. 2009 freetaxusa Meals and Lodging: Breakfast Lunch Dinner Hotel and Motel (Detail in Schedule B) 3. 2009 freetaxusa Entertainment (Detail in Schedule C) 4. 2009 freetaxusa Other Expenses: Postage Telephone & Telegraph Stationery & Printing Stenographer Sample Room Advertising Assistant(s) Trade Shows 5. 2009 freetaxusa Car Expenses: (List all car expenses - the division between business and personal expenses may be made at the end of the year. 2009 freetaxusa ) (Detail mileage in Schedule A. 2009 freetaxusa ) Gas, oil, lube, wash Repairs, parts Tires, supplies Parking fees, tolls 6. 2009 freetaxusa Other (Identify) Total Note: Attach receipted bills for (1) ALL lodging and (2) any other expenses of $75. 2009 freetaxusa 00 or more. 2009 freetaxusa Schedule A – Car Mileage: End Start Total Business Mileage Schedule B – Lodging Hotel or Motel Name City Schedule C – Entertainment Date Item Place Amount Business Purpose Business Relationship WEEKLY REIMBURSEMENTS: Travel and transportation expenses Other reimbursements TOTAL How Long To Keep Records and Receipts You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. 2009 freetaxusa Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. 2009 freetaxusa A return filed early is considered filed on the due date. 2009 freetaxusa For a more complete explanation of how long to keep records, see Publication 583, Starting a Business and Keeping Records. 2009 freetaxusa You must keep records of the business use of your car for each year of the recovery period. 2009 freetaxusa See More-than-50%-use test in chapter 4 under Depreciation Deduction. 2009 freetaxusa Reimbursed for expenses. 2009 freetaxusa Employees who give their records and documentation to their employers and are reimbursed for their expenses generally do not have to keep copies of this information. 2009 freetaxusa However, you may have to prove your expenses if any of the following conditions apply. 2009 freetaxusa You claim deductions for expenses that are more than reimbursements. 2009 freetaxusa Your expenses are reimbursed under a nonaccountable plan. 2009 freetaxusa Your employer does not use adequate accounting procedures to verify expense accounts. 2009 freetaxusa You are related to your employer as defined under Per Diem and Car Allowances , in chapter 6. 2009 freetaxusa Reimbursements , adequate accounting , and nonaccountable plans are discussed in chapter 6. 2009 freetaxusa Examples of Records Table 5-2 and Table 5-3 are examples of worksheets which can be used for tracking business expenses. 2009 freetaxusa Prev Up Next Home More Online Publications