- 28 -
Given our conclusion that petitioner may use the revenue
procedures to ascertain the amount of his deductible incidental
expenses, petitioner asks the Court to allow him to use the full
M&IE rates to ascertain those deductions. We decline to do so.
We do not read the revenue procedures to allow a taxpayer to use
the full M&IE rates when he or she incurs only incidental
expenses. The M&IE rates represent the amount that the
Government pays daily to its traveling employees to compensate
them for four items of traveling expense; namely, breakfast,
lunch, dinner, and incidental expenses. See 41 C.F.R. sec. 301-
7.2(a)(2) (1994 & 1996). Specific amounts are apportioned under
the travel regulations to each of these four items, depending on
the point of travel.9 The portion of the M&IE rates that is
attributable to incidental expenses incurred in all of the CONUS
9 The definition of the term “incidental expenses” under the
travel regulations is slightly broader than the definition of the
same term under the applicable revenue procedures. Compare 41
C.F.R. sec. 301-7.1(c)(3) (1994 & 1996), with Rev. Proc. 90-60,
sec. 3.02(4), 1990-2 C.B. at 652. Section 301-7.1(c)(3) of 41
C.F.R. (1994 & 1996) provides:
(3) Incidental expenses covered by per diem. (i)
Fees and tips to porters, baggage carriers, bellhops,
hotel maids, stewards, and stewardesses and others on
vessels, and hotel servants in foreign countries.
(ii) Laundry and cleaning and pressing of
clothing.
(iii) Transportation between places of lodging or
business and places where meals are taken * * *.
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011