From: Denver, CO

Hi TaxMama!

I process expense reports and occasionally will get the 'top' copy of the receipt, without the detail - for instance a meal.

Should we be requiring the detail part of the receipt?

Thanks so much!

Pat Koenig

 

 

 

Hi Pat,

Not so much for tax purposes, but for company management purposes, I'd want to see that detailed receipt.

Of course, if you DO get the detailed receipts and you find that the employees are abusing the company's generosity, you'd have to deal with that. If you don't, an IRS agent, seeing the detail, might notice that some receipts, in certain situations, don't make sense.

Some companies, prefer to allow their staff that benefit, turning a blind eye to excessive spending, kind of as an employee perk.

Being the kind of person that I am - I would try to get the detail. Often, though, the restaurant doesn't give you that receipt. So, without having the staff make a big fuss, what can you do?

As to tax audit issues, you'll survive without that. But, clearly, for your reports, your staff has to let you know who they were with, and why. So, that should suffice.

Best Wishes,
Eva Rosenberg, MBA, EA