- 8 - claim such reimbursement, the expenses are not deductible because they are not “necessary”; i.e., it is not necessary for an employee to remain unreimbursed for expenses to the extent he could have been reimbursed. Orvis v. Commissioner, 788 F.2d 1406 (9th Cir. 1986), affg. T.C. Memo. 1984-553; Lucas v. Commissioner, 79 T.C. 1,7 (1982); Kennelly v. Commissioner, 56 T.C. 936, 943 (1971), affd. without published opinion 456 F.2d 1335 (2d Cir. 1972). Furthermore, the mere failure of an employee to seek reimbursement cannot convert the employer's expenses into the employee's. Kennelly v. Commissioner, supra. The employee has the burden of establishing that the employer would not reimburse the expense had the employee requested reimbursement. Podems v. Commissioner, 24 T.C. 21, 23 (1955). Moreover, the prohibition of deductions for reimbursable expenses is a “bright line rule” and applies even when the employee is unaware that the expenses are reimbursable. Orvis v. Commissioner, supra at 1408. Respondent called Mr. Armstrong to testify as to the public defender's policy regarding reimbursement of expenses. During 1992, Mr. Armstrong oversaw public defenders' requests for reimbursements. During 1992, the county reimbursed public defenders for 100 percent of their expenses for educational training up to $600 per year per attorney ($150 from the MCLE Fund and $450 from the Tuition Reimbursement Fund), and 50Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011