New client is being audited for 2009 was away from home 192 days during 2009 took $70.00 perdiem a day for lodging.Auditor wants hotel receipts says not entitled to perdiem.
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To elabroate, TTB page 8-12 says:
No standard deduction for lodging. The per diem rates for
lodging are used only to determine the amount of employer
reimbursement that meets the accountable plan rules, not for
calculating deductions.
• Self-employed taxpayers and employees who are not reimbursed
by their employer cannot use the per diem rates for
lodging to determine a deduction for unreimbursed lodging
expenses but must instead use the actual expense method.
• Self-employed taxpayers and employees can use the per diem
rates for meals to determine a deduction for unreimbursed
meal expenses.Comment
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Receipts optional??
Common sense, even in this case miraculously including the IRS auditor, says that someone who expects to claim 38 or so weeks of "temporary absence" in a single year better have some serious records in his tax file to back it up!
He may have somewhat better luck on the meals (let me guess - steak dinner every night??) but if there are no lodging receipts/travel records, the "fruit of the poisonous tree" concept may also rear its ugly head and lead to a hefty tax bill w/penalty et al.
BTW: I would strongly suggest payment up front for this "new" client.
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