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connection with sales representative meetings between 2 to 7
times per month. Petitioner credibly testified that her meals
expenses were not reimbursable by Pacific Bell. Mr. Moreno did
not convince us otherwise. Ms. Groves' letter did not mention
any Pacific Bell policy regarding reimbursement for meals with
other employees. Accordingly, we hold that petitioner's meals
expenses were not reimbursable by Pacific Bell.
To substantiate her meals expenses, petitioner presented a
detailed calendar for 1991 in which she recorded the date,
amount, place, and business purpose of the meals expenses. In
addition, petitioner credibly testified that the meals expenses
were incurred to motivate her sales representatives or incurred
in connection with meetings to discuss accounts or other work-
related problems with her sales representatives. Based on
petitioner's calendar and testimony, we conclude that she
incurred meals expenses for lunch and dinner of $1,843.20 and for
sales representative meetings of $569. Accordingly, petitioner
is entitled to a meals expense deduction based on those amounts,
subject to the 80-percent limitation imposed by section 274(n).
c. Contest Prizes. In 1991, Pacific Bell held a 6-month
contest to motivate the sales representatives to maximize
revenue. Winners of the contest received awards totaling $1,000.
The sales manager was required to pay the bonus and was entitled
to reimbursement from Pacific Bell. Four of petitioner's sales
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