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unable to substantiate the expenses claimed, respondent allowed
petitioner a $26 per diem amount for each night he was out of
town.
The notice of deficiency allowed a deduction of $458 for
meals for 1992 after applying the section 274(n) limitation.
Because petitioner presented no records for 1993 or 1994 during
the audit, respondent allowed a comparable percentage (16.43
percent) of the claimed meal expenses for 1993 and 1994. Based
on documentation submitted to respondent subsequent to trial,
respondent conceded on brief that petitioner was out of town on
business 65 nights in 1992 and 23 nights in 1993. The total
amount conceded by respondent for 1992 meal expense is $1,612,
resulting in an allowable deduction for meals of $1,290 after the
20-percent limitation of section 274(n). The total amount
conceded by respondent for 1993 meal expense is $598, resulting
in an allowable deduction for meals of $478 after the 20-percent
limitation.
With respect to petitioner’s claimed meal expenses for 1994,
respondent has conceded that petitioner is entitled to a per diem
meal allowance of $26 per day for each night petitioner stayed
overnight at a motel during 1994. Petitioner submitted motel
receipts at trial which demonstrate that petitioner occupied a
motel room in connection with his business 25 nights during
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