Question

My tax preparer says there is no such thing as a $75 rule for receipts on vehicle expenses. He says I need receipts for all my car expenses. Can you give me the rule that says I do not need receipts if the vehicle expense is less than $75?

Answer

Certainly! The $75 rule is contained in IRS Regulation 1.274-5(c)(2)(iii),1 and the best explanation of what this rule says is found in IRS Notice 95-50,2 which states that the $75 rule applies ... Log in to view full article.