Jim L. Westling - Page 2




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          deduction by using the full Federal per diem rates for meals and            
          incidental expenses (M&IE rates) referenced in Rev. Proc. 96-28,            
          1996-1 C.B. 686 (applicable to meal and incidental expenses paid            
          by an employee for travel while away from home after March 31,              
          1996), and Rev. Proc. 94-77, 1994-2 C.B. 825 (applicable to meal            
          and incidental expenses paid by an employee for travel while away           
          from home after December 31, 1994).  See, e.g., Rev. Proc. 96-28,           
          sec. 4.03, 1996-1 C.B. at 688.  Petitioner’s actual expenses                
          consisted solely of incidental expenses; while at work, his                 
          employer furnished him with lodging and meals at no charge.                 
               We must decide whether petitioner may deduct the claimed               
          amount.  We hold he may not.  We hold that petitioner’s use of              
          the M&IE rates is limited to the incidental expense portion of              
          those rates and that his deductions must be determined                      
          accordingly.  Unless otherwise indicated, section references are            
          to the Internal Revenue Code in effect for the subject year, and            
          Rule references are to the Tax Court Rules of Practice and                  
          Procedure.                                                                  
                                  FINDINGS OF FACT                                    
               Most facts were stipulated.  The parties’ stipulations of              
          fact and the exhibits submitted therewith are incorporated herein           
          by this reference.  The stipulations of fact are found                      
          accordingly.  Petitioner resided in Everett, Washington, when his           
          petition was filed.  He resided during the subject year in a                





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