The Internal Revenue Service (IRS) audits are focusing more on employee reimbursements. In response to this changing audit environment, the Texas A&M University System’s outside tax attorney has recommended Texas A&M members change current practices to ensure compliance with IRS publications 463, 535 and 15-B.
Effective 9/1/2014, we will have a more restrictive policy than our previous local funds policy. The new policy will be to reimburse actuals up to the GSA rate without receipts, but receipts or substantiation are required if the daily meal expenses exceed the GSA rate. The State Department’s rates will be used for foreign travel. (Fiscal responsibility still applies).
Substantiation can be either the receipt or if the travel card was used, this provides the required substantiation. State Funds Policy will remain the same – reimburse up to the GSA rate, no receipts or substantiation required.
Please note, this new policy doesn’t apply to single meals of $75 or business meals. Those will both continue to require an itemized receipt, regardless of whether or the University Travel was used to make the purchase.