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

The Top Ten Benefits of “MassTaxConnect” for Business Taxpayers posted on Jul 30

The Top Ten Benefits of “MassTaxConnect” for Business Taxpayers

Getting to know DOR’s New, Modernized Filing System As you may have heard, the Massachusetts Department of Revenue is revamping the way the business taxpayers can file taxes in the Commonwealth.  This new filing system, MassTaxConnect, offers taxpayers a state-of-the-art tax administration system that will   …Continue Reading The Top Ten Benefits of “MassTaxConnect” for Business Taxpayers

Prep Early for Next Tax Season posted on May 20

Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now   …Continue Reading Prep Early for Next Tax Season

DOR’s Participation in the Family Court Workshops posted on Apr 22

Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community   …Continue Reading DOR’s Participation in the Family Court Workshops