How to Survive an Entertainment-Deduction Audit

It’s a fact…

You don’t need a receipt for an entertainment expense that’s under $75.

But don’t think the IRS is asleep at the switch. They know that a lot of folks deduct many under-$75 meals, etc., that aren’t legit.

What’s more, they can smell fishy entertainment deductions a mile away and, in an audit, make your life miserable if you’re not careful.

Want to learn how to audit-proof your entertainment expenses and avoid the IRS’s “no-receipt-required” trap?

Easy. Read my new article titled Tax Tips: Entertainment Tax Deductions Look Fishy!

Three ways our fact-filled article can help you:

1. Follow the “Three Ws” rule. When you entertain, be sure to write down the applicable “who,” “where, “ and “why” facts within a week! If you fail to keep your records in good order the IRS and the courts will hammer you hard. We’ll tell you how to stay out of trouble when you read the full article.
2. Be sure to keep your receipts. I know. You aren’t required to keep your receipts for entertainment under $75. But keep them anyway! If you’re doing a bit of entertaining for under $75 and have no receipts, your auditor will become very suspicious. You’ll get all the details when you read the full article.
3. Make sure you can prove where you got the cash. If you’re going to use the under-$75 rule, your IRS auditor may ask how you got the cash to cover the expenses. Can you link an ATM withdrawal or cashed check to your entertainment expenditure? These are the kinds of questions you’ll need to be concerned about as we’ll explain when you read the full article.

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