I have a job offer from a finance firm that will require from 50% to 80% time traveling, and the part that I hate about traveling is the downtime, the hotels and the long lonely nights. I haven't done business travel in at least 10 years and seriously not looking forward to it, unless, and just to be blunt, I get the firm to pay for hobbying.  

and frankly it seems like a good way to get fired.  You might find a small petty cash for incidentals can supplement your after hours entertainment...   but I'd not expect to be able to fund the full ride.

What can possibly go wrong with that?  I trust you have some internal auditors who have a sense of humor.

I negotiated to get a flat rate daily per diem direct deposited when I'm out of town which allows me to make deals and pocket the rest. Actually what I get every week more than pays for my expenses and seeing a beautiful young lady weekly if I so choose. In fact one of the best in the biz ( imo) just left!!

Or you had to provide documentation supporting the use of those funds.

I like someone who knows their shit no matter what profession it is.

but you better be pretty damn good at what you do.

Obviously the company cannot directly pay for illegal activity, not only on their dime, but their time. The liability issues are endless.

Your only real option is to tell the company that "due to your peculiar personal habits" you  will require a $500 per day per diem for "Eats, drinks and incidentals" for all travel days, and that NO, you will not be providing receipts. Take it or leave it.

Obviously the "per diem" will actually be taxable income as you can't possibly be considering asking hookers for receipts. If you are valuable enough to the company, maybe they'll go along with it, but unless you are one hell of a rain maker, I wouldn't count on it.

Very perceptive, I'm fairly impressed. And here I thought you were like every other accountant I've ever met, master of a calculator with an attention to detail. Honestly, I don't care how they do their books as long as I get my money tax free! I am certain my employer doesn't launder money though, they are a top 25 company in my area. I've been there 16 years and the IRS hasn't bothered me yet.....knock on wood!!

Posted By: ChgoCPA

Or you had to provide documentation supporting the use of those funds.  
   
 Or perhaps you work for a company that deals in cash and also prefers to launder money?  
   
 Sounds like you were (are) in construction    
   

Posted By: doinchurchwork

I negotiated to get a flat rate daily per diem direct deposited when I'm out of town which allows me to make deals and pocket the rest. Actually what I get every week more than pays for my expenses and seeing a beautiful young lady weekly if I so choose. In fact one of the best in the biz ( imo) just left!!

The closest legal or accounting term I can think of for it would be "travel pay" which is perfectly legal, you can do whatever the fuck you want with it, but it does need to be declared at the end of the year. If you keep receipts and accurate records during the course of your travels, you can recoup some of this off of your taxes, but the onus has been shifted off of your company on to you by doing it this way.

I guess church has decided to play IRS roulette..and so far so good.

the hotel room the company is paying for.  Say hello to incall.

some Providers and Agencies take CC.  And will state things like discreet billing.  

You are correct, it is listed on my W-2. As misc. Non taxable income. I am required to keep a record of the date and expense but not receipts. I wouldn't list it on a 2106 as I am not claiming anything as a business expense. I am doing exactly what the IRS instructed me to do when I inquired. No problems for over 15 years and I'm confident I won't have any in the future. I do like to gamble, just not with the government. I do appreciate hearing your pov though, thanks.

I am not an accountant, nor did I stay in a Holiday Inn Express last night, but I find that a contradiction in terms, and very, very suspect, but I will defer to an actual CPA on the matter.

Without receipts, and without you taking offsetting and itemized deductions, I can't for the life of me believe that this "income" is tax free.



-- Modified on 5/29/2014 8:48:35 PM

The per diem was a small amount.  I can't see how you would think that material dollars would or could simply be unreported or unsubstantiated.

But never did they cover my expenses beyond the hotel room plus travel expenses.  I always had to compensate personally when on the road.  Lucky you if they will pay for that...

Frequent Flier miles, but it's getting harder to get them work.
Hotel loyalty programs: it's your best return.  Free rooms when you need them.
Per Diems usually run $35-65/day.  Unless you eat ramen noodles and save your dimes, not much there.
Lunch/Dinner: depending on policy, you may be able to squeeze one in.  

The IRS allows the use of per diem payments for travel and they are not taxable to the employee as long as the payment is not in excess of the federal governments per diem rates, and the employee files an expense report.   The expense report must show date, location, and business purpose of trip.  Ref: rev. Proc. 2011-47, 2011-42 I. R. B. 520.

What company is going to want to take a chance on having a sex scandal linked to them exposed?

I suppose that instead of meals, you could eat pussy, but that's about it.

You need to be a high end client, and have a supplier willing to suck up to you.

You are absolutely correct. Rate limits are set by GSA and vary depending on where you travel. Perfectly legal and depending on the city, the rates can be fairly high.  

Maybe this will help you feel good about yourself.  I can even get it autographed for you if you'd like.

and somewhere around 50% of the info received off one of their "hot lines" proved to be incorrect. The study I read also confirmed that the tax payers were still liable for not only the taxes due, but also any civil or criminal penalties incurred by following the IRS's own faulty advice.

I never said I am following what I was told on a phone call. I was sent the revenue procedure info pertaining to per diem. It clearly states that as long as you are at or below the federal rate limits of conus or GSA it is not counted as taxable income. The only documentation required is the date, location and expense which I keep my own log of and is also listed on the expense reports I turn in. No receipts are required.  

I travel ever week on co business so I really would like to know how the negotiations went

Legit Business Expenses are paid for on AMEX
Personal Hobby Expense Cash only!
Do not try to fudge or fool with the IRS when it comes to Entertainment; they are not stupid!
I have traveled 150 nights on State Government Business my entire career, it just pays to be honest!
Always feels great to come home and crash in the Governors Mansion!

I don't need to dig through the IRS code to get bored.

Truth be told, I actually believe you are correct, not to mention the fact that even if I didn't, it's not important enough to me to try and "prove" you wrong.

Just out of curiosity, what is the legal maximum you can get without exceeding the threshold?

I never expected to have to prove I was right. It was kinda mind numbing. Anyway,  the limit depends on the city you travel to. Chicago is about 275 a day but Louisville is about 175. It adds up fast when you cut a hotel deal or if you are close enough to drive daily, which happens to me alot. So weekly it varies from about 1500 a week for largest cities to about 750 for smaller ones. Technically,  an overnight stay is required, but being  under the limit means you don't need to prove you stayed.