Marc G. Bissonnette and Lillian I. Cone - Page 8

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          off duty, and during the 5-hour layover petitioner usually fueled           
          the ferryboat and continually moved it to different locations               
          because of harbor congestion.  Because petitioner did not go off            
          duty during these voyages, the company provided a second captain            
          capable of maintaining the ferryboat to allow petitioner time to            
          rest.                                                                       
               Petitioner did not provide receipts to substantiate his M&IE           
          incurred during peak-season layovers or during on-board rest                
          breaks.  Instead, he used the allowable Federal M&IE rate for the           
          locality of travel.6                                                        
          C.   Off-Peak Travel Season                                                 
               In the years at issue, each off-peak travel season ran from            
          September 9 until the next year’s peak-season began.  During each           
          off-peak season petitioner typically captained the Clipper from             
          Seattle to Victoria and back.  The Clipper generally departed               
          Seattle between 7:30 and 8:30 a.m., arrived in Victoria between             
          10:30 and 11 a.m., departed Victoria between 5 and 6:30 p.m., and           


               6 The Federal M&IE rate represents the daily amount that the           
          Government pays to its traveling employees to reimburse them for            
          breakfast, lunch, dinner, and incidental expenses.  Johnson v.              
          Commissioner, 115 T.C. 210, 227 (2000).                                     
               The term “locality of travel” means the locality where an              
          employee traveling away from home in connection with the                    
          performance of services as an employee of the employer stops for            
          sleep or rest.  Rev. Proc. 2000-39, 2000-2 C.B. 340; Rev. Proc.             
          2001-47, 2001-2 C.B. 332; Rev. Proc. 2002-63, 2002-2 C.B. 691;              
          Rev. Proc. 2003-80, 2003-2 C.B. 1037.                                       





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