Post Content

Many employees have business expenses, but have questions about what's allowable and what type of documentation is needed. To help with that, DOR has created a short video and an Employee Business Expenses page that lists the top reasons contributing to the disallowance of an employee business expense, along with our Audit Division’s recommendations for how to avoid possible errors. Take a look before you, or your practitioner file.

Here's a few samples from the page:

1)  Lack of documentation to support an expense

  • Receipts
  • Business purpose of expense
  • Ballpark estimates

Solution: Retain all business related receipts.  Ideally, the receipts should be retained in chronological order.   Maintain a calendar to record business purpose/contact/time/location of the business meeting.

2)  Incomplete or insufficient travel log.  

Solution: Maintain a real time daily travel log that includes necessary information including, address of location, mileage and business purpose/contact of the trip.

3)  Failure to respond to a DOR Notice.

Solution: Respond to the notice if you believe you are entitled to the deduction.

 

See the video on DOR's homepage — and the Audit recommendations 

Written By:

Recent Posts

Why do most Massachusetts taxpayers file electronically? Lots of good reasons. posted on Mar 17

If you haven’t filed your Massachusetts personal income tax return, there are very good reasons to consider e-filing.  Millions of taxpayers have already taken advantage of e-filing, the most convenient way to get your taxes done. Why are we confident that e-filing is the very   …Continue Reading Why do most Massachusetts taxpayers file electronically? Lots of good reasons.

MassTaxConnect for Fiduciary Taxes – Get Started on December 5, 2016! posted on Nov 14

With WebFile for Income Stepping Aside, MassTaxConnect Steps Up MassTaxConnect, the Commonwealth’s new tax revenue system, will be expanding to include fiduciary and other taxes on December 5, 2016. As you may already know, WebFile for Income is now officially closed as we prepare to   …Continue Reading MassTaxConnect for Fiduciary Taxes – Get Started on December 5, 2016!

November 6: WebFiIe for Income Makes Way for MassTaxConnect posted on Nov 4

WebFile for Income says goodbye as MassTaxConnect welcomes more taxpayers In anticipation of MassTaxConnect expanding to include 10 additional tax types, WebFile for Income will say goodbye to users on November 6 at midnight. Save the date – pay bills electronically through November 6 If   …Continue Reading November 6: WebFiIe for Income Makes Way for MassTaxConnect