Jump directly to the content

IRS Issues New Business Expense Substantiation Rules

What churches and their employees should know.

Background. In March the IRS released amended regulations addressing the substantiation of business expenses under an employer's expense reimbursement arrangement. The amended regulations contain a number of provisions that will affect the way churches reimburse business expenses. It is important for church treasurers to be familiar with the new rules. This article will summarize the amended regulations, and illustrate them with several examples.

Receipts. For many years the income tax regulations required that taxpayers substantiate the amount of any business expense of $25 or more with a receipt. In 1995 the IRS announced that it was increasing this "receipt threshold" to $75. The amended regulations make official the action taken by the IRS in 1995.

Key point. The $75 receipt requirement applies both to the deductibility of a business expense, and to the substantiation of a business expense ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
  • July 1, 1997

Related ResourcesVisit Store

Receipts for Donors
Receipts for Donors
16 letters and forms for providing receipts to donors for different donations.