- 9 - the performance of services as an employee of the employer, (2) reasonably calculated not to exceed the amount of the expenses or the anticipated expenses, and (3) paid at the applicable Federal per diem rate, a flat rate or stated schedule, or in accordance with any other Service- specified rate or schedule. [Rev. Proc. 93-21, 1993-1 C.B. at 530; Rev. Proc. 92-17, 1992-1 C.B. at 680.] We find that the arrangement in this case meets the definition of "per diem allowance" provided in the Commissioner's revenue procedures. It was reasonable for Romer to anticipate that petitioner would incur lodging, meal, and incidental expenses as its employee while he was away from his Tennessee residence. It was also reasonable for Romer to estimate that the applicable Federal per diem rate for Minneapolis would not exceed petitioner's anticipated expenses. We find that the amount of petitioner's traveling expenses is deemed substantiated under the per diem allowance method.2 With respect to the time, place, and business purpose of traveling expenses, section 1.274-5T(c)(1), Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985), generally provides that a taxpayer must substantiate these elements of an expenditure by adequate records or by sufficient evidence corroborating his own 2 Since the arrangement provides for a per diem allowance, it is treated as satisfying the sec. 1.62-2(f), Income Tax Regs., return of excess requirement for an accountable plan. See sec. 1.62-2(f)(2), Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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