Before you reimburse yourself, close the evidence gap
Sample Planning Letter · fictional example · educational, not personalized advice
The free idea: check whether you pay business expenses personally. The useful next
step is to turn that question into a reviewable expense report—not transfer money
because a deduction sounds plausible.
Start with one month's records
Consider a fictional S-corporation owner who paid a $100 phone bill and an $80
internet bill personally. Assume their records support 60% business use of the
phone and 50% of the internet. Those percentages are example assumptions, not IRS
standard allowances or recommendations for your business.
| Item |
Example calculation |
Candidate business amount |
| Phone |
$100 × 60% |
$60 |
| Internet |
$80 × 50% |
$40 |
| Total |
$60 + $40 |
$100 |
| Already reimbursed |
Subtract the recorded payment |
−$40 |
| Left to review |
$100 − $40 |
$60 |
That is $60 of potentially unreimbursed expenses, not $60 of tax savings. The
plan, expenses, allocation, timing and prior payments still need checking. Do not
project this month over a year without checking the other months.
Build the review packet
- Find the itemized bills and evidence of who paid. Keep expense dates separate
from the date you prepare the report.
- Explain the business purpose and the evidence for each business-use share.
Exclude personal use; don’t select a percentage just to reach a target.
- Compare the bills with the business ledger and earlier expense reports. Mark
the existing $40 reimbursement so it cannot be paid again.
- Ask your accountant to check the reimbursement arrangement and timing. An
accountable plan requires a business connection, timely substantiation and
timely return of excess amounts. A document alone is not enough.
- Prepare a draft report showing what is supported and what is still missing.
Obtain the required review and approval before reimbursement. Preserve the
approval and actual payment record with the packet.
The federal rules include a 60-day substantiation safe harbor, measured from when
an expense is paid or incurred. It is not a universal rule that every older
expense fails. Have your accountant assess the facts and the plan’s own terms;
do not backdate records to fit a window.
A message you can adapt for your accountant
I’m reviewing personally paid business expenses for [period]. I’ve attached the
bills, payment evidence, business-use explanation and previous reimbursements.
Could you check whether our arrangement covers these costs, whether the timing
and support are sufficient, and who should approve the report? The draft leaves
[items] unresolved; no new reimbursement has been made.
Replace the brackets with real facts. Do not send documents through this website.
The public reimbursement form
can help organize a report; it cannot establish eligibility for you.
Decide the next action
If evidence is missing, assign a person and a follow-up date. If the accountant
identifies a problem with the arrangement or timing, resolve it before payment.
After an approved reimbursement, reconcile it and retain the evidence so next
month’s check does not rediscover the same expense.
Sources checked September 23, 2026:
IRS Publication 463, accountable plans
and Treasury Regulation §1.62-2.
This sample has not been sent as an issue. It does not include app access or a
personal review of your records.