Tip of the Month

February 2018  - 60-day Rule

The University's business expense guidelines were written in accordance with the requirements set forth by the Internal Revenue Service ("IRS"). One of the requirements within their set of rules, is that expense receipts must be turned in within a reasonable time period. The IRS, of course, goes on to tell us their definition of a reasonable time. This led us to the 60 days which is the IRS maximum required time frame.

However, let us do a bit of clarification. The period of 60 days starts ticking on a stand-alone receipt, such as a book purpose or supplies picked up at the local Wal-mart, on the date of purchase. University travel or sabbatical period, on the other hand begins its 60 day period upon the completion of the trip or sabbatical period. We will use the last day of sabbatical leave as either fall term at 12/31/xxxx or winter term or end of academic year at 06/30/xxxx. University business travel such as a spring term abroad program for the full four weeks - which ends on May 19, 2018 - would begin the countdown on May 19 with a report and receipts due on July 18, 2018. We would hope that a report with receipts would be turned in sooner in order to keep us comfortably within compliance with the IRS. As with the spring term abroad programs, we hope that a report with receipts for a winter term or academic year would be turned in sooner rather than later so that we would be able to process the report in the proper fiscal year.