September 29, 1995
IRS Eases Receipt Requirement
WASHINGTON - The Internal Revenue Service announced today a
significant change for employers and employees by raising the
requirement for many business receipts from $25 to $75 starting Oct.
The law requires taxpayers to have adequate records for proof of
expenses such as traveling, entertainment or gifts in order to claim
a deduction. Current regulations allow a deduction if taxpayers have
a receipt for lodging when on business travel, and have receipts for
other expenses of $25 or more. The $25 threshold dates back to 1962.
IRS Commissioner Margaret Milner Richardson said, "This change
is part of our ongoing efforts to make government work better and
cost less. It will make recordkeeping a lot less difficult for
businesses and employees. We are working hard to update our
regulations whenever possible or simply eliminate them if we can."
Other adequate accounting rules require employers who reimburse
employees for business expenses to obtain and keep records such as
receipts provided by employees and to produce them if IRS requests.
IRS is reviewing these rules to determine whether changes should be
made to provide alternative ways to satisfy these recordkeeping
requirements. IRS invites the public to comment on this matter. The
address to send comments and further information can be found in
Notice 95-50. This notice will appear in Internal Revenue Bulletin
1995-42 dated Oct. 16, 1995 and is attached.
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