Paul Harrison Duncan - Page 6




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          This revenue procedure also provides an optional method for                 
          employees and self-employed individuals to substantiate the                 
          amount of business meal and incidental expenses incurred while              
          traveling away from home.                                                   
               The amounts petitioner claimed for lodging and meals                   
          represent expenses incurred while hauling cargo throughout the              
          United States.  Instead of claiming the actual lodging and meal             
          expenses incurred, petitioner claimed expenses for lodging and              
          meals based on the Federal per-diem rates for lodging and meals             
          provided in Rev. Proc. 93-50, 1993-2 C.B. 586.  Petitioner                  
          calculated the number of days during 1994 that he traveled while            
          hauling cargo and then multiplied the days traveled by the per-             
          diem amounts allowed for lodging expenses and meal and incidental           
          expenses, respectively.                                                     
               Respondent disallowed $5,576 of the lodging expenses claimed           
          for lack of substantiation.  Respondent contends that petitioner            
          had not provided documentation to substantiate that he actually             
          incurred lodging expenses on his cargo hauling trips or the                 
          amount of the expenses he incurred as required by section 274 for           
          the reason that petitioner slept in the cab of his tractor-truck            
          when traveling and therefore did not actually incur lodging                 
          expenses.  Respondent otherwise agrees that petitioner properly             
          substantiated the time, place, and business purpose of the trips            
          for which the lodging expenses were claimed.                                





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