2007-01-07 07:58:15 · 3 answers · asked by Bat 1 in Business & Finance ➔ Taxes ➔ United States
Legally it needs to be substantiated but the only way they would know that there was no receipt is if your audited.
2007-01-07 08:05:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some expenses do not require a receipt and some do.
A business which takes tax deductions without receipts or records is asking for tax trouble.
2007-01-07 16:54:02 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
As long as they're keeping proper records, they can, but it would be a terrible business practice to do it that way, since if they're audited, the IRS might or might not accept their records.
If they have employees, they're required to do proper withholding and to pay various employer taxes. If they aren't doing that, they're setting themselves up for a lot of trouble.
2007-01-07 16:22:34 · answer #3 · answered by Judy 7 · 0⤊ 0⤋