'T&E and Home by 3'

“T&E and home by 3.” The IRS audit mantra. Grab the low-hanging fruit and call it a day. Easy-peasy.

What does this mean?

An IRS agent just needs to audit the travel and entertainment accounts to obtain an adjustment and go home. Not much work with a large pay-off because business travel and entertainment expenses have special documentation requirements, and if these requirements are not met, the business will be unable to take a deduction. Many businesses do not maintain adequate documentation for these items.