- 10 - section 274(d), the substantiation requirement is fulfilled if the employee provides information sufficient to satisfy the substantiation requirements of section 274(d) and the regulations thereunder to the employer. Sec. 1.62-2(e)(2), Income Tax Regs. Section 274(d) allows a deduction for expenses of traveling away from home only if an employee substantiates the amount, date, time, place, and business purpose for the travel. Sec. 1.274- 5T(b)(2), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985). For business expenses not governed by section 274(d), the employee must submit information to the employer sufficient to enable the employer to identify the specific nature of each expense and conclude that the expense is attributable to the employer’s business activities. For these nonsection 274(d) expenses, each of the elements of an expenditure or use must be substantiated to the payor. Sec. 1.62-2(e)(3), Income Tax Regs. Petitioner and Mr. Kerkinni testified that petitioner submitted a list of expenses and receipts to Mr. Kerkinni annually. In addition, before making expenditures on behalf of IMC, petitioner would inform Mr. Kerkinni that his work required a certain piece of equipment, and, with Mr. Kerkinni’s permission, he would purchase what was needed. Petitioner would then show Mr. Kerkinni the receipts. Mr. Kerkinni asked petitioner to keep track of and save the receipts. Petitioner’s lists and receipts were submitted at trial. The lists providedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011