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Step 1-5. IRS regulations require you to include a written statement of the business purpose of an expense unless it is evident form the surrounding facts and circumstances. Documentary evidence, such as receipts, paid bills, or similar evidences sufficient to support an expenditure is required for: Any expenditure for lodging while away from home, and.
First, the expenses must have been paid to the employee or incurred by the employee while performing services for the employer. Second, the employee must be required to provide documentation to the employer to substantiate the business expenses and must do so in a timely manner.or example, an employer may provide an employee with a set amount for expenses while traveling on business. Assume the reimbursement plan provides $75 per day for meals and the employee does not need to provide receipts for expenses.