Questionable employee business expenses.

• Position: FTB news - Brief article

The FTB has noticed a large number of taxpayers who claim unreimbursed employee business expenses (EBE) on Schedule A that appear questionable. In response, the FTB will increase the number of audits for taxpayers deducting EBE on personal income tax returns, starting with the 2011 and 2012 tax years.

Revenue and Taxation Code Sec. 17201, except as otherwise provided, permits the deduction of all ordinary and necessary business expenses in accordance with Internal Revenue Code Sec. 162. Valid employee business expenses are defined as:

* Paid or incurred during your tax year.

* Required to carry on a trade or business.

* Ordinary and necessary.

* Not...