S Corporation, old expenses

[skar...@gmail.com]

I have receipts from various business related out-of-pocket expenses
that are more than 2 years old. I have been just collecting the
receipts but never expensed them. Total amount of these receipts is
well below $1,000.

Is there a limit as to how far back I can go for expensing out-of-
pocket business related purchases?

If it is going to be big hassle (fill out another IRS form), I would
consider just shredding the receipts.

Thanks for your time.

[Paul Thomas, CPA]

<skar...@gmail.com> wrote

>I have receipts from various business related out-of-pocket expenses
> that are more than 2 years old. I have been just collecting the
> receipts but never expensed them. Total amount of these receipts is
> well below $1,000.
>
> Is there a limit as to how far back I can go for expensing out-of-
> pocket business related purchases?

For an employees and the self-employed, it's the year the expense was
incured. Employee business expenses fall to Form 2106 and Schedule A.
Self-employed expenses fall to Schedule C. Other annual business type
expenses would be recorded on Schedule E (rental expenses) or Schedule F
(farm expenses).

For a corporation, the corporate policy should prevail. It should be
reasonable for the type of industry you are in.

Clearly waiting two years for reimbursement is not logical or reasonable. A
few months old is one thing, 30 month old expenses are quite another story.

> If it is going to be big hassle (fill out another IRS form), I would
> consider just shredding the receipts.

You should keep them even if you don't want to amend returns. Just in case
of an audit you can pull them out as a trump card if needed.

--
Paul A. Thomas, CPA
Athens, Georgia