Unreimbursed Business Expenses May Not Be Deductible

In a recent tax court summary opinion (Stidham, T.C. Summ. Op. 2012-61), the tax court ruled that a taxpayer was not entitled to take a tax deduction for unreimbursed businesses expenses that could have been reimbursed according to the employer’s “Business Travel & Entertainment Policies and Procedures.”  

The takeaway here is to recognize the importance of having a written expense reimbursement policy, and for employees and stakeholders to follow it.   

Questions? Give our Tax Department a call at 781.407.0300 or visit our website!