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pay for such expenses. This revenue procedure also
provides an optional method for employees and self-
employed individuals to use in computing the deductible
costs of business meal and incidental expenses paid or
incurred while traveling away from home. * * *
[Emphasis added.]
Under Rev. Proc. 94-77, 1994-2 C.B. 825, employees and self-
employed individuals are allowed to use the Federal per diem rate
to substantiate business meals and incidental expenses incurred
when traveling away from home. However, the use of the Federal
per diem rate to substantiate the amount of lodging expenses is
available only to certain employer-employee reimbursement
arrangements. The procedure excludes self-employed individuals
from using the Federal per diem rate to substantiate the amount
of their lodging expenses. Therefore, a self-employed individual
must still prove the amount of lodging costs with documentary
evidence. See sec. 1.274-5T(c)(2)(iii), Temporary Income Tax
Regs., 50 Fed. Reg. 46006 (Nov. 6, 1985).
This Court has previously addressed the issue of whether a
self-employed individual is entitled to use the Federal per diem
rate to substantiate the amount of deductible lodging expenses
for travel away from home under section 274(d). In Duncan v.
Commissioner, T.C. Memo. 2000-269, the taxpayer, a self-employed
individual, claimed deductions for lodging and meals based on the
Federal per diem rate. The Commissioner disallowed the lodging
expenses that were claimed for lack of substantiation under
section 274(d). The Court explained that a self-employed
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