- 16 -
(Otherwise, as discussed more fully infra, petitioner has not
independently substantiated, and thus is entitled to no deduction
for, any of the subject expenses in excess of those deemed to be
substantiated under the Revenue Procedures.)13 Accordingly,
under section 6.05 of the Revenue Procedures, the full amount of
the per diem payments is treated as being for food and beverages
and thus subject to the 50-percent limitation of section 274(n).
D. Petitioner’s Contentions
Petitioner argues that because Beech Trucking leased its
drivers from ATS, the section 274(n) limitation is inapplicable
to Beech Trucking. Petitioner also argues that the Revenue
Procedures are invalid insofar as they operate to characterize
the Beech Trucking per diem payments as being solely for M&IE
expenses (and not for lodging) and to apply the section 274(n)
limitation to nonmeal expenses that were covered by the per diem
13 Moreover, as discussed infra, the evidence indicates that
Beech Trucking’s per diem payments were in fact less than the
Federal M&IE rate.
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