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loss. See Eren v. Commissioner, T.C. Memo. 1995-555. The
service work petitioner performed was part of the regular
business of the Messenger Service. The record indicates that the
Messenger Service had the right to discharge petitioner.
Finally, it is evident that petitioner and the Messenger Service
believed they had an employer-employee relationship because
petitioner's earnings each year were reflected by IRS Forms W-2
for salary or wages, a categorization that petitioner never
challenged. The facts do not support a finding that petitioner
was an independent contractor. Petitioner was an employee of the
Messenger Service. Respondent is sustained on this issue.
The second issue is with respect to deductions claimed by
petitioner for meals and entertainment on his 1995 and 1996
income tax returns. On his returns, petitioner claimed, after
application of the 50-percent limitation provision of section
274(n), $2,800 and $1,650, respectively, for meals and
entertainment for 1995 and 1996, which respondent disallowed.
The geographical area in which petitioner worked was the
city of Reno, points north and west of Reno, the Lake Tahoe area,
and occasionally east Reno. None of these areas was at a
distance that required petitioner to incur an expense for
lodging. Nevertheless, petitioner incurred expenses for meals.
Petitioner's position is that expenses for meals are deductible
while at work. As he testified at trial, "The meal deduction
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