Question
While visiting a client to deliver their 2019 tax documents, one of the owners approaches you and states: The IRS says my travel is no
While visiting a client to deliver their 2019 tax documents, one of the owners approaches you and states: "The IRS says my travel is no longer business travel, but instead, is commuting. They are saying I am going to owe taxes on the money the company has reimbursed for my travel. I spend $1,500 per week traveling, and travel at least 50 weeks out of the year, traveling between Houston, Los Angeles, Seattle, Chicago and Philadelphia. I have been traveling like this for the past 10 years. That is a lot of money we are talking about. The IRS also said something about fraud, fines and penalties, maybe even jail time. Are they right? Can they send me to jail for doing my job? What should I do?"
What will you tell your client? What laws govern this situation?
Is there a time element that affects this topic?
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