One single most important aspect of claiming meal expenses is documentation. Paying cash for a meal is problematic because of a lack of proof for the payment. We suggest refraining from paying cash for meal expenses, or you have to keep it to a very minimum for a better audit trail. Every entity should use a credit card to pay meal expenses to ensure the proof of payment.

Following is a general list of factors the IRS will consider when allowing a business meal deduction:

• Itself must have a business purpose. You need to document the business subject(s) that was discussed during the meal.

• Prove Date, time location, and amount spent on the meal. You must keep the restaurant receipt.

• Proof of payment. A credit card statement can be used to prove the payment.

It is ideal for scanning the above documents, so they are readily available during an IRS audit. Remember, proper documentation is always a key to succeed an IRS audit.