- 8 - deductions on the grounds that petitioner did not prove that he incurred the expenses pursuant to section 162(a), and that he did not maintain adequate records to establish the specific amounts of the deductions as required by section 6001. 1. Travel Expenses Section 162 allows taxpayers to deduct the “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including * * * traveling expenses * * * while away from home”. Sec. 162(a)(2). Section 274(d) and its implementing regulations impose stringent substantiation requirements for the deduction of travel expenses under section 162(a). a. “Away From Home” Petitioner must meet three requirements in order to deduct travel expenses under section 162(a)(2): The expenses must be (1) reasonable and necessary; (2) incurred while away from home; and (3) incurred in pursuit of a trade or business. Flowers v. Commissioner, 326 U.S. 465, 470 (1946). Respondent contends that the travel expenses petitioner claimed do not satisfy the second Flowers requirement, that petitioner be “away from home.” We agree with respondent. Section 162(a)(2) “reflects congressional concern both for the unavoidable duplication of expenses and for the fact that meals and lodging are more costly for a person who must travelPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011