Welcome to Luca!globe
CPA Journal - April 1998 Current Issue!    Navigation Tips!
Main Menu
CPA Journal
Professional Libary
Professional Forums
Member Services


Moving into the electronic age, more and more proof of transactions never reaches paper form. The good news is that IRS recently ruled to recognize this new paperless environment in document substantiation.

An example of these paperless transactions is electronic ticketing now offered by some airlines. A travel agent electronically books the flight, and prepares an itinerary which is then transmitted to the customer via e-mail or fax. The customer never receives a paper ticket or a receipt, and submits a copy of the fax or the e-mail message with an expense report to obtain reimbursement.

In a recent letter ruling, the IRS analyzes this transaction and opined that the copy of the itinerary is sufficient substantiation to meet the requirements of IRC section 274, which requires documentary evidence of travel and entertainment expenses.

Source: LTR 9805007.

The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.

©2009 The New York State Society of CPAs. Legal Notices

Visit the new cpajournal.com.