Expenses and Nepotism

Discussion in 'Legal and HR' started by Keval Kapadia, Dec 7, 2016.

  1. Keval Kapadia

    Keval Kapadia
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    My uncle owns a small hotel firm. I work for him as the VP of business development. I don't own any part or portion of the firm but I receive bonuses. Also, I have access to the companies financial accounts and can sign checks for employees wages, sign up for credit cards, issue bonuses to other employees, etc. Basically, I wanted to know if I can expense certain things using a company credit card as long as the owner says it's ok verbally. I wanted to know if it is legal by IRS standards. Again, I'm an employee not a part owner: (1) vacations (2) meals while on vacaction (3) meals while traveling (4) meals while on (5) taxis ...are there any limits to this. I use a company credit card that has both my name and the companies name.
     
  2. Business Attorney

    Business Attorney
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    Keval, yes the IRS has rules on that. Some of the expenses you listed may be legitimate expenses of the business, in which case the fact that the business pays those expenses is fine, and has no tax consequences to you. If the business pays personal expenses, such as vacation expenses, then that is in effect compensation to you and needs to be reported as such by both you and the business.
     
  3. Keval Kapadia

    Keval Kapadia
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    ...but wouldn't it be some kind of perk/bonus the business is awarding me for my hard work like a all expense paid vacation?
     
  4. Business Attorney

    Business Attorney
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