Here are two important letters: the Auto Letter and the Travel, Meals, and Entertainment Letter. These letters provide helpful information regarding the proper documentation and substantiation of these business-related expenses, as well as any relevant updates to the tax code that could impact your deductions. The Auto Log Blank Sheet and Meals and Entertainment Log can be used for tracking.
Even if you do not currently track or claim these expenses, we encourage you to review the letters. If any of the topics are applicable to your business or personal situation, we recommend taking note of the necessary steps to document these expenses. If you’re unsure whether these deductions apply to you, or if you’d like to discuss whether it makes sense to start tracking them, please feel free to reach out.
It’s also important to remember that when it comes to tax deductions, the burden of proof ultimately falls on the taxpayer. This means that if any of these expenses are ever questioned by the IRS, it is your responsibility to provide appropriate documentation to substantiate them. We recommend keeping detailed records to ensure you’re prepared if the need arises.
We will continue to send these letters periodically to ensure you have up-to-date information on the latest tax requirements.
As always, we’re here to assist you. Please reach out to your client manager with any questions you may have.