Auto, travel, and gift expenses are subject to strict documentation requirements. Taxpayers are required to keep records that show
I.The business purpose of the event.
II.The time and place of the event.

Question

Auto, travel, and gift expenses are subject to strict documentation requirements. Taxpayers are required to keep records that show
I.The business purpose of the event.
II.The time and place of the event.
​

Quizplus · Accepted Answer

Both statements are correct. The IRS requires taxpayers to keep detailed records of auto, travel, and gift expenses, which should include the business purpose of the event as well as the time and place of the event. This helps to demonstrate that the expenses were necessary and directly related to the taxpayer's business.

Auto, Travel, and Gift Expenses Are Subject to Strict Documentation