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substantiated for purposes of section 274(d). Rev. Proc. 92-17,
1992-1 C.B. 679, and Rev. Proc. 93-21, 1993-1 C.B. 529, apply for
the taxable year 1993. These revenue procedures also provide an
optional method for employees and self-employed individuals to
substantiate the amounts of business meal and incidental expenses
incurred while traveling away from home.
While Rev. Proc. 92-17, sec. 4.01, 1992-1 C.B. at 680, and
Rev. Proc. 93-21, sec. 4.01, 1993-1 C.B. at 531, authorize the
use of the per diem method to substantiate the amount of lodging,
meal, and incidental costs, this method of reporting is available
only to employees whose employers pay a per diem allowance in
lieu of reimbursing the actual expenses incurred by the employee
while traveling away from home. However, petitioner’s expenses
for lodging are not covered by this provision because he was
self-employed. Although petitioner, as a self-employed
individual, would have been entitled to use the per diem method
allowed under Rev. Proc. 92-17, sec. 4.03, 1992-1 C.B. at 680,
and Rev. Proc. 93-21, sec. 4.03, 1993-1 C.B. at 531, those
provisions are limited to meals and incidental expenses.
Accordingly, petitioner’s away-from-home lodging expenses are not
deductible because they have not been otherwise substantiated
pursuant to section 274(d). See Duncan v. Commissioner, T.C.
Memo. 2000-269.
Petitioner’s failure to satisfy the substantiation
requirements under section 274(d) makes it unnecessary to
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Last modified: May 25, 2011