How to Deduct Business Travel Expenses: A Complete Guide

Key Takeaways

• Understand Eligibility: Familiarize yourself with IRS criteria for deductible business travel expenses, ensuring that each expense is ordinary, necessary, and directly related to your business.
• Maintain Rigorous Documentation: Keep detailed records of all travel expenses, including receipts, logs, and notes on the business purpose of each expense. This practice not only supports compliance but also facilitates strategic tax planning.
• Plan Strategically: Incorporate tax considerations into your business travel planning. Aim to maximize deductible expenses while aligning with broader business objectives and tax strategies.
• Stay Informed and Seek Advice: Tax laws and regulations can change. Staying informed about current rules and consulting with tax professionals can help navigate complexities and leverage opportunities within the tax code.

Introduction

Navigating the intricate landscape of tax deductions is a pivotal aspect of financial planning for small businesses and self-employed individuals, especially when it pertains to business travel expenses. In the dynamic world of entrepreneurship, travel is often an indispensable component of operations—be it for networking, client meetings, or exploring new markets. However, the realm of travel expenses is not just about managing costs; it’s also about understanding how these expenditures can be levered within your tax strategy to optimize financial outcomes.

The ability to deduct business travel expenses offers a significant opportunity to reduce your taxable income, thereby potentially lowering your overall tax liability. Yet, the process is governed by a complex set of IRS rules and regulations, making it crucial for business owners and independent professionals to grasp the essentials of what can and cannot be deducted. Misinterpretations or oversights can lead to missed opportunities for savings or, conversely, unwelcome scrutiny from tax authorities.

This comprehensive guide is designed to illuminate the path through the maze of rules surrounding business travel deductions. From defining eligible expenses to providing tips on record-keeping and compliance, our aim is to equip you with the knowledge needed to make informed decisions that align with both IRS guidelines and your business’s financial strategy. Whether you’re a seasoned business traveler or newly navigating the waters of business-related journeys, this guide promises to be an invaluable resource in your financial planning toolkit.

As we delve into the details of deducting business travel expenses, remember that this guide serves an educational and informative purpose. It’s tailored to demystify the complexities of tax deductions and to empower you as a business owner or self-employed professional to harness these rules in favor of your financial well-being. Join us as we explore the intricacies of business travel deductions, ensuring you’re well-informed and confidently compliant in optimizing your tax strategy.

Understanding Business Travel Expenses

Before delving into the specifics of deductions, it’s crucial to establish a clear understanding of what constitutes a business travel expense. The IRS defines business travel expenses as the ordinary and necessary costs of traveling away from home for your business, profession, or job. However, not every expense during a trip qualifies, and distinguishing between personal and business expenses is essential to remain compliant with tax laws.

Defining Business Travel

Business travel is characterized by activities that require you to be away from your regular place of business substantially longer than an ordinary day’s work, necessitating sleep or rest to meet the demands of the work while away. This definition is critical because it sets the boundary between daily commuting expenses (which are non-deductible) and deductible travel expenses.

Common Deductible Business Travel Expenses:

• Airfare, Rail, and Bus Tickets: The cost of transportation to and from your business destination is fully deductible.
• Lodging: Hotel or accommodation expenses are deductible for the days that are necessary for the business activity.
• Meals: 50% of the cost of meals during business travel can be deducted, subject to the IRS’s standard meal allowance or actual expense method.
• Car Rentals and Mileage: If you rent a car for business travel or use your own vehicle, the business portion of your expenses is deductible.
• Other Travel Costs: This can include taxi fares, baggage fees, tips, and other incidental expenses related to business travel.

It’s important to note that expenses must be both “ordinary” and “necessary” to be considered deductible. “Ordinary” refers to common and accepted expenses in your field of business, while “necessary” implies that the expense is appropriate and helpful for your business.

Distinguishing Between Business and Personal Expenses

When travel includes both business and personal activities, expenses must be clearly separated. Only the costs directly related to the business portion of the trip are deductible. For example, if you extend your stay at a destination for personal leisure, the additional lodging and meal costs are not deductible.

Understanding these distinctions is foundational for navigating the nuances of business travel deductions. It sets the stage for deeper exploration into eligibility criteria, record-keeping, and the strategic planning of business travel to maximize tax benefits. In the next sections, we will delve into these topics, offering practical advice and insights to ensure your travel expenses align with IRS regulations and contribute positively to your business’s financial health.

Table 1: Overview of Deductible Business Travel Expenses

Eligibility Criteria for Deducting Travel Expenses

To leverage tax deductions for business travel effectively, it’s crucial to comprehend the eligibility criteria established by the IRS. These criteria ensure that only legitimate business travel expenses are deducted, safeguarding businesses against potential audit risks and compliance issues. This section outlines the key considerations and rules that determine the deductibility of travel expenses.

Qualifying for Business Travel Deductions

For a travel expense to be deductible, the primary purpose of the trip must be business-related. The IRS applies several tests to determine this:

• Temporary Assignment: The travel must be temporary, typically expected to last less than a year. If the travel is expected to last longer, it may be considered an indefinite assignment, making the expenses non-deductible.
• Sleep or Rest Rule: The trip must require you to be away from your tax home (the entire city or area where your main place of business or work is located) long enough to necessitate sleep or rest. This criterion distinguishes business travel from day-to-day commutes.
• Substantial Business Activity: There must be a substantial and bona fide business reason for the travel. Attending conferences, client meetings, or exploring business opportunities are common examples.

Special Considerations for International Travel

For international business travel, the rules become more nuanced. The entire trip’s expenses can be deductible if the trip is entirely dedicated to business activities. However, if the trip combines business with personal activities, you must allocate costs between the deductible business expenses and non-deductible personal expenses, unless you meet one of the exceptions that allow for full deduction, such as:

• The Week Rule: If the trip is seven consecutive days or less (excluding the departure and return days), and the primary purpose is business, the entire trip may qualify for deduction.
• Less Than 25% Personal Activity: If personal activities account for less than 25% of the time abroad, the travel expenses for the business days are fully deductible.
• No Substantial Control: If you have no substantial control over arranging the trip (applicable mainly to employees who are not company owners or executives), the trip may qualify for full deduction even with personal activities included.

Local vs. International Travel Distinctions

While local travel within the United States follows the general rules outlined above, international travel deductions are subject to additional scrutiny and require more detailed record-keeping to substantiate the business nature of the trip.

Understanding these eligibility criteria is paramount for business owners and self-employed individuals. It ensures that travel expenses claimed as deductions are justifiable and compliant with IRS regulations, thereby avoiding potential disputes or penalties. In the following sections, we’ll explore how to maintain accurate records and provide practical tips for calculating and reporting travel deductions, further solidifying your tax optimization strategies.

Keeping Accurate Records

Maintaining meticulous records of business travel expenses is not just a good business practice; it’s a necessity for tax compliance and optimization. Accurate record-keeping substantiates the deductions you claim, providing a clear audit trail in case the IRS reviews your tax returns. This section delves into the essentials of record-keeping for business travel expenses, offering strategies to ensure your documentation is thorough and IRS-compliant.

Importance of Detailed Documentation

The IRS requires taxpayers to keep timely and detailed records of every expense they wish to deduct. This includes not just proof of payment, but also evidence of the business purpose of each expense. In the context of business travel, this means recording not just how much you spent, but where, when, why, and with whom the business activity occurred.

Essential Records to Maintain

• Receipts: Keep all receipts for travel expenses, including airfare, hotel bills, rental car invoices, meal purchases, and any other costs incurred during the trip. Digital copies are acceptable, provided they are legible and complete.
• Travel Itinerary: Maintain a detailed itinerary that includes dates, destinations, and the purpose of each trip segment. This should correlate with the business activities and meetings attended.
• Proof of Payment: Credit card statements, canceled checks, and cash receipts serve as proof of payment. Ensure these documents clearly link the payment to the travel expense.
• Mileage Logs: If using a personal vehicle for business travel, keep a log of miles driven for business purposes, including the date, purpose, and starting and ending locations. The IRS allows deductions based on standard mileage rates or actual vehicle expenses.

Best Practices for Organizing Records

• Use Expense Tracking Apps: Leveraging technology can simplify the process of tracking travel expenses. Numerous apps are designed to capture receipts, log mileage, and categorize expenses in real-time.
• Implement a Consistent Filing System: Whether you use digital or physical files, establish a consistent system for organizing records by year and type of expense. This makes retrieval easier in case of an audit.
• Regularly Review and Reconcile Expenses: Schedule monthly or quarterly reviews of your travel expenses to ensure completeness and accuracy. This practice helps catch any missing documentation or discrepancies early on.

The Role of Record-Keeping in Tax Planning

Beyond compliance, effective record-keeping plays a vital role in strategic tax planning. By having a clear overview of your business travel expenses, you can identify patterns, plan future expenditures more efficiently, and make informed decisions that align with your overall tax strategy.

In summary, diligent record-keeping is the backbone of successfully deducting business travel expenses. It not only safeguards against compliance risks but also empowers you to manage and optimize your tax obligations proactively. As we progress to the next sections, we’ll explore the intricacies of calculating and reporting travel deductions, further enhancing your ability to leverage travel expenses within your tax strategy effectively.

Travel Expense Deductions: Do’s and Don’ts

Successfully navigating the realm of business travel deductions hinges on understanding not only what can be deducted but also what pitfalls to avoid. This section outlines the do’s and don’ts of travel expense deductions, providing clarity on allowable deductions while highlighting common mistakes that could lead to compliance issues or missed opportunities.

Do’s: Allowable Deductions

• Transportation Costs: This includes airfare, train tickets, bus fares, and car rentals directly related to your business travel. If using your vehicle, you can deduct the standard mileage rate or actual expenses related to business use.
• Lodging and Accommodations: Hotel or other lodging expenses necessary for the business portion of the trip are deductible. This does not cover luxury accommodations or expenses beyond the business necessity.
• Meals: 50% of the cost of meals during business travel is deductible. This includes meals alone when necessary for travel or meals with clients if a business discussion takes place. The IRS also offers a standard meal allowance, which simplifies record-keeping.
• Incidental Expenses: These can include tips, tolls, parking fees, and internet charges, provided they are related to business activities during the trip.

Don’ts: Common Pitfalls to Avoid

• Extravagant or Lavish Expenses: The IRS scrutinizes expenses that appear extravagant. Even if an expense is business-related, if it’s deemed lavish or extravagant under the circumstances, it may be disallowed.
• Personal Portions of Travel: Expenses related to personal activities during a business trip are not deductible. This includes extending your stay for leisure, bringing family members without a business purpose, or personal side trips.
• Commuting Costs: Costs of commuting between your home and regular workplace are not deductible as business travel expenses, even if you work during the commute.
• Non-Substantiated Expenses: Deductions without proper documentation or clear business purpose are likely to be disallowed in the event of an audit. Always maintain detailed records and receipts.

Special Circumstances and Exceptions

• Conventions and Conferences: Expenses for attending conventions, seminars, or similar events can be deductible if they are directly related to your business and the event serves a bona fide business purpose.
• Extended Business Travel: If a trip exceeds one year, it may be considered an indefinite assignment, making the travel expenses non-deductible. However, exceptions exist for certain industries and situations.
• Luxury Accommodations and Entertainment: While some costs related to luxury accommodations or entertainment can be partially deductible, they are closely scrutinized and must be justified as ordinary and necessary business expenses.

Understanding these do’s and don’ts is essential for maximizing your travel expense deductions while remaining compliant with IRS regulations. By carefully planning your business travel and maintaining rigorous documentation, you can ensure that your deductions are legitimate and optimized for your tax situation.

In the next section, we’ll explore how to calculate and report these deductions on your tax return, providing a practical guide to translating your well-organized records into tangible tax savings.

Table 2: Do’s and Don’ts of Travel Expense Deductions

Calculating and Reporting Travel Deductions

Once you have a clear understanding of which travel expenses are deductible and have maintained thorough records, the next step is to calculate and report these deductions on your tax return. This section offers a step-by-step guide to ensure accuracy and compliance in this critical phase of tax planning.

Step 1: Organize Your Records

Begin by organizing your travel expense records by category (e.g., transportation, lodging, meals). Ensure each expense is accompanied by documentation that includes the date, amount, and business purpose. This organization will streamline the calculation process and prepare you for any necessary reporting details.

Step 2: Calculate Deductible Expenses

• Transportation: Sum up all costs related to getting to and from your business destination. If using your car, calculate the deductible amount using the standard mileage rate provided by the IRS for the tax year, or tally up the actual expenses if you’re using that method.
• Lodging: Add up the costs of your business-related lodging. Remember, only the nights necessary for the business engagements are deductible.
• Meals: Total your meal expenses and apply the 50% limitation rule. Alternatively, use the standard meal allowance rates for simplicity, ensuring to only include days that were entirely devoted to business activities.
• Incidental Expenses: Compile all miscellaneous expenses that are directly related to the business travel and meet the criteria for deductibility.

Step 3: Complete Relevant Tax Forms

• For sole proprietors and single-member LLCs, report your travel expenses on Schedule C (Form 1040) under the appropriate expense categories.
• Partnerships and multi-member LLCs should report these expenses on Form 1065, while S Corporations use Form 1120-S.
• Ensure to fill out the form accurately, attaching any required schedules or supporting documentation as dictated by the form instructions or your tax professional’s advice.

Step 4: Utilize Tax Software or Consult a Professional

Given the complexities of tax laws and the potential for changes from year to year, consider using reputable tax software designed for small businesses or self-employed individuals. These programs can guide you through the reporting process, ensuring that deductions are calculated accurately and in compliance with current laws.

Alternatively, consulting with a tax professional can provide personalized advice and peace of mind, especially for businesses with significant travel expenses or unique situations. A tax expert can help optimize your deductions, advise on strategic tax planning, and ensure that your filings are accurate and compliant.

Step 5: Keep Copies of Your Tax Return and Supporting Documents

After filing your tax return, it’s crucial to keep a copy of the return along with all supporting documentation for your records. The IRS may request these documents in the event of an audit, and having them readily available can significantly simplify the review process.

By following these steps to calculate and report your business travel deductions accurately, you can maximize your tax benefits while maintaining compliance with IRS regulations. This not only optimizes your current tax situation but also strengthens your overall financial planning strategy for future growth and success.

Table 3: Record-Keeping Checklist for Business Travel Deductions

Example Scenarios

To provide a practical understanding of how business travel deductions work in real-life scenarios, this section presents case studies and examples. These illustrate common situations that small business owners and self-employed individuals might encounter, showcasing the application of IRS rules to calculate and report travel expenses effectively.

Scenario 1: National Sales Conference Attendance

John, a self-employed sales consultant, travels from his home in Chicago to attend a four-day sales conference in Los Angeles. His expenses include:

• Round-trip airfare: $500
• Hotel stay for 4 nights: $800
• Meals during the trip: $300
• Taxi fares to and from the airport and conference: $100

Analysis: All of John’s expenses are directly related to his business of being a sales consultant. The primary purpose of the trip is business, making his airfare, lodging, and taxi fares fully deductible. For meals, John can deduct 50%, totaling $150. His total deductible travel expenses amount to $1,550.

Scenario 2: Mixed Business and Personal Travel

Sarah, who owns a small digital marketing firm, travels to New York for client meetings. After concluding her business, she extends her stay for a weekend of sightseeing. Her expenses include:

• Round-trip airfare: $400
• Hotel stay for business days (3 nights): $600
• Additional hotel stay for personal days (2 nights): $400
• Meals during business days: $200
• Meals during personal days: $100
• Car rental for the entire trip: $300

Analysis: Sarah can deduct the airfare, as the trip’s primary purpose is business. She can also deduct the hotel costs and meals for the business portion of her trip, totaling $800 for lodging and $100 for meals (50% of $200). However, the expenses for her personal days, including the additional hotel stay and meals, are not deductible. The car rental poses a more complex situation; Sarah needs to allocate the expense between business and personal use. Assuming business use accounts for 60% of her total driving, she can deduct $180 (60% of $300) for the car rental. Her total deductible expenses are $1,480.

Scenario 3: International Conference with Personal Extension

Alex, an IT consultant, travels to Berlin for a week-long technology conference relevant to his business. He then extends his trip by four days for personal sightseeing. His expenses include:

• Round-trip airfare: $1,000
• Conference fees: $500
• Hotel stay for the conference (7 nights): $1,400
• Additional hotel stay for personal days (4 nights): $800
• Meals during the trip: $700

Analysis: The primary purpose of Alex’s trip is business, making his airfare, conference fees, and hotel stay during the conference fully deductible. For meals, he can deduct 50% of the cost for the business days, totaling $245 (50% of $490, assuming $70/day for 7 days). The expenses for his personal extension, including the additional hotel stay and meals for those days, are not deductible. Alex’s total deductible expenses are $3,145.

These Scenarios highlight the importance of distinguishing between business and personal expenses, understanding the eligibility criteria for deductions, and maintaining accurate records. By applying these principles, small business owners and self-employed individuals can navigate travel deductions confidently, ensuring compliance and optimizing their tax benefits.

Leveraging Travel Deductions for Tax Optimization

Strategic planning and understanding of tax regulations can transform necessary business travel expenses into significant tax-saving opportunities. This section focuses on leveraging business travel deductions as part of a broader tax optimization strategy, ensuring that every trip not only serves its immediate business purpose but also contributes to your overall financial efficiency.

Planning Business Travel with Tax Deductions in Mind

• Combine Business Activities: Whenever possible, combine multiple business activities into a single trip. This approach maximizes the deductible portion of travel expenses while reducing the overall number of trips needed.
• Understand Destination Rules: Certain destinations, especially international ones, may have specific tax rules affecting the deductibility of travel expenses. Familiarize yourself with these nuances to plan trips that comply with tax regulations while maximizing deductions.
• Schedule Business Around Pre-Planned Travel: If you have a pre-planned trip, consider scheduling business activities during this time. Ensure the primary purpose of the trip aligns with business to maximize deductible expenses.

Timing and Documentation

• Optimize Travel Timing: Where possible, time your travel to coincide with lower-cost seasons or promotional periods, reducing the overall expense while maintaining the deduction amount.
• Maintain Impeccable Records: Detailed documentation not only supports the legitimacy of deductions but also allows you to analyze travel expenses over time, identifying trends and opportunities for future tax planning.

Leveraging Technology for Efficiency

• Use Expense Tracking Apps: Mobile apps can streamline the process of tracking travel expenses, ensuring accurate and contemporaneous records. These tools often feature receipt scanning, categorization, and even tax-ready reporting functionalities.
• Implement Accounting Software: Integrating your expense tracking with comprehensive accounting software can provide a holistic view of your finances, facilitating strategic decisions that encompass tax planning, cash flow management, and financial forecasting.

Consulting with Tax Professionals

• Engage a Tax Advisor: Regular consultations with a tax professional can help you navigate the complexities of tax law, ensuring that your travel deduction strategies are both compliant and optimized. A tax advisor can offer personalized advice tailored to your business’s unique circumstances.
• Stay Informed on Tax Law Changes: Tax laws and regulations can change, impacting the deductibility of travel expenses. Staying informed, either through your own research or by consulting with a tax professional, ensures that your tax strategies remain effective and compliant.

Example Application

Consider the case of a business owner who strategically schedules client meetings and industry conferences in conjunction with each other, effectively reducing the number of trips while maximizing the deductible expenses. By keeping detailed records through an expense tracking app and consulting with a tax advisor, the business owner not only ensures compliance but also leverages these deductions to optimize the business’s overall tax liability.

Incorporating travel deductions into your tax planning is not just about reducing costs in the short term; it’s about adopting a strategic approach that enhances the financial health of your business over time. By planning wisely, maintaining rigorous documentation, and seeking professional advice, you can ensure that your business travel not only serves its immediate purpose but also contributes positively to your broader financial goals.

Table 4: Steps for Calculating and Reporting Business Travel Deductions

Common Questions and Misconceptions

In the complex world of business travel deductions, certain questions frequently arise, and misconceptions can lead to missed opportunities or unintentional non-compliance. Addressing these can clarify the process, ensuring that small business owners and self-employed individuals fully leverage their travel deductions while adhering to IRS regulations.

Q1: Are all travel expenses 100% deductible?

• Misconception: Many assume that all costs incurred during business travel are fully deductible.
• Clarification: While many travel expenses are deductible, they are often subject to limitations and conditions. For example, only 50% of meal expenses are typically deductible, and personal expenses during a business trip are not deductible.

Q2: Can I deduct travel expenses for a trip that includes both business and personal activities?

• Misconception: If a trip combines business and personal activities, none of the expenses are deductible.
• Clarification: You can deduct travel expenses related to the business portion of the trip. It’s crucial to clearly differentiate and document expenses related to business activities versus those for personal enjoyment.

Q3: Are luxury travel accommodations and first-class airfares deductible?

• Misconception: All types of travel accommodations, including luxury stays and first-class airfares, are deductible if they relate to a business trip.
• Clarification: The IRS allows deductions for expenses that are both ordinary and necessary. Excessive costs beyond what is necessary for the business purpose, deemed lavish or extravagant, may not be fully deductible.

Q4: Is attending a business conference or seminar always considered a deductible travel expense?

• Misconception: All expenses for attending any business conference or seminar are deductible.
• Clarification: The conference or seminar must be directly related to your business or profession, and its purpose must serve a bona fide business interest. Documentation should support the relevance of the event to your business.

Q5: Can I deduct travel expenses even if my business hasn’t turned a profit yet?

• Misconception: Business travel expenses are not deductible until the business becomes profitable.
• Clarification: You can deduct allowable business expenses, including travel, even if your business isn’t profitable yet. These deductions can contribute to a net operating loss, which may have other tax implications or benefits.

Q6: Do I need to keep physical receipts for all travel expenses?

• Misconception: Only physical paper receipts are acceptable for documenting travel expenses.
• Clarification: The IRS accepts digital records, provided they are detailed and legible. Digital expense tracking can simplify record-keeping, but it’s important to ensure backups and security for digital records.

Addressing these common questions and misconceptions helps demystify the process of deducting business travel expenses, guiding business owners and self-employed individuals toward more effective tax planning and compliance. As always, consulting with a tax professional can provide tailored advice and clarity for specific situations, ensuring that your approach to travel deductions is both strategic and compliant.

Conclusion: Maximizing Value While Ensuring Compliance

Navigating the nuances of business travel deductions is a critical aspect of tax planning for small business owners and self-employed individuals. By understanding what constitutes a deductible travel expense, maintaining accurate records, and strategically planning business travel, you can leverage these deductions to optimize your tax situation. This guide has provided a comprehensive overview, from the basics of eligible expenses to the intricacies of calculating and reporting deductions, aimed at empowering you with the knowledge to make informed decisions.

Get Active!

As you apply these principles to your business travel activities, remember that the goal is not just to reduce taxes but to enhance the overall financial health of your business. Consider how each travel expense aligns with your business goals and tax strategy, and don’t hesitate to seek professional advice for complex situations or significant expenditures.

We invite you to share your experiences, challenges, or questions regarding business travel deductions in the comments below or on at our community forums. Engaging with a community of peers can provide additional insights and strategies, further enriching your understanding and approach to tax planning.

For more detailed guidance, specific to your business circumstances, consulting with a tax advisor is highly encouraged and recommended. Their expertise can provide personalized advice, ensuring that your tax planning is both effective and compliant.

In the ever-evolving landscape of business and taxation, proactive and informed tax planning is a cornerstone of financial success. By leveraging the insights and strategies outlined in this guide, you can navigate the complexities of business travel deductions with confidence, contributing to the sustainable growth and financial resilience of your business.

Business Travel Deductions Checklist

Planning and Documentation

• Determine the primary purpose of the trip to ensure it qualifies as business travel.
• Keep a detailed itinerary including dates, destinations, and business activities.
• Use an expense tracking app or system to record expenses in real-time.

Expense Tracking

• Collect and organize all receipts related to travel expenses (e.g., transportation, lodging, meals).
• Maintain a daily log of business miles driven if using a personal vehicle for business travel.
• Document the business purpose for each expense, especially for meals and entertainment.

Expense Categorization

• Separate expenses into categories (transportation, lodging, meals, etc.).
• Distinguish between business and personal expenses for mixed-purpose trips.
• Apply the 50% rule to meals and entertainment expenses where applicable.

Record-Keeping

• Ensure all receipts and records are clear, legible, and complete.
• Store digital copies of receipts and documents securely.
• Regularly review and reconcile expenses with business records.

Calculating Deductions

• Calculate total expenses for each category of deductible travel expenses.
• Apply IRS rules to determine the deductible portion of each expense.
• Decide between standard mileage rate and actual vehicle expenses if applicable.

Reporting Deductions

• Complete the appropriate sections of your tax return for travel deductions (Schedule C, Form 1065, Form 1120-S).
• Double-check calculations and entries to ensure accuracy.
• Consult with a tax professional if unsure about any deductions or tax forms.

Compliance and Audit Preparedness

• Review IRS guidelines on business travel deductions to ensure compliance.
• Keep all documentation related to travel expenses for at least three years.
• Be prepared to provide detailed explanations of expenses if queried by the IRS.