Substantiation

Summary

Taxpayers are required to keep documentation to substantiate their expenses. However, not every taxpayer does so. When this is the case, taxpayers sometimes rely on the “Cohan” rule. The Cohan rule can provide relief to taxpayers who do not have sufficient documentation for their expenses. However, the Cohan rule can only go so far when the Internal Revenue Code has strict substantiation requirements in the case of business travel and charitable contributions. With this course, you’ll examine the criteria for substantiating and deducting these expenses.

Objectives

Upon completion of this course, you will be able to:

• Recognize when the Courts have allowed the use of the Cohan rule to substantiate a business expense.
• Identify the strict substantiation requirements for travel expenses.
• Identify the strict substantiation requirements for charitable contributions.
• Differentiate between a taxpayer’s tax home and residence.
• Summarize the importance of having a tax home to accurately deduct travel expenses.
• Outline the criteria for claiming a charitable contribution deduction.

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.