This situation hasn't arisen yet, but I thought I would ask just in case. If a shop report is denied and I am not granted payment, can I claim the cost of that shop (travel and expenses) on my taxes as a business expense?
If it is a business expense, yes you can. Subject to the limits placed on certain expenses by the IRS. I suggest you go to the IRS website for more details.
Happily shopping Rhode Island and nearby Massachusetts and Connecticut