TIGTA has issued a report on its review of whether the IRS has established effective controls to identify and address instances of waste, fraud, and abuse relating to the use of employee telephone calling cards. See the Report. Tghe report states: "Overall, the IRS lacks effective controls over telephone calling cards issued to employees. Specifically, telephone calling card charges are not routinely reviewed for waste, fraud, and abuse, and a comprehensive inventory of telephone calling cards is not completed annually".
It is interesting to note that the IRS is being stricter in taxpayer's keeping records, but not in their own house. Even the courts are enforcing the requirement of substantation. See: Freddy W. Fuentes v. Commissioner; T.C. Summ. Op. 2009-39; No. 16020-07S.
