I went to an audit today and heard something from the auditor that made me say hum.
The auditor said per her superiors that cell phone expenses can not be claimed unless the client has the bill/invoice and that every call must show business purpose and name of person spoke to . She said they would need to on the actual bill or spreadsheet list the phone number, name and purpose of call or otherwise the expense will be disallowed. This is for sch c , 1120, 1120s ,1065 and 2106.
I know having the bill is important but the name and purpose for every call seems a bit crazy to me.
Luckly it didn't cause a problem for my client because it was a little expense 1000.00
Have any of you heard the same in an audit or at any seminars?
The auditor said per her superiors that cell phone expenses can not be claimed unless the client has the bill/invoice and that every call must show business purpose and name of person spoke to . She said they would need to on the actual bill or spreadsheet list the phone number, name and purpose of call or otherwise the expense will be disallowed. This is for sch c , 1120, 1120s ,1065 and 2106.
I know having the bill is important but the name and purpose for every call seems a bit crazy to me.
Luckly it didn't cause a problem for my client because it was a little expense 1000.00
Have any of you heard the same in an audit or at any seminars?
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