Recordkeeping DOs & DON’Ts for Business Meal and Vehicle Expenses

Business Meals and Vehicle Expenses RecordkeepingIf you’re claiming deductions for business vehicle or meals expenses, expect the IRS to closely review them. It’s important to comply with the strict tax law substantiation requirements for these items. DO keep detailed, accurate records. For each expense, record the amount, the time and place, the business purpose, and the business relationship of anyone to whom you provided a meal. If you have employees who you reimburse for meals and auto expenses, make sure they’re complying with all the rules. DON’T reconstruct expense logs at year end or wait until you receive an IRS. Take a moment to record the details in a log or diary or on a receipt at the time of the event or soon after.