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subject, as compared with business owners, partners in firms, and
independent contractors.
The general proposition is that a deduction is allowed under
section 62(a) only if it is allowable under some other provision
of the Internal Revenue Code (Code). Section 62(a) merely
enumerates the deductions allowed an individual in computing
adjusted gross income; it does not create any new or additional
deductions that are not already provided for by some other
section of the Code. See sec. 1.62-1T(b), Temporary Income Tax
Regs., 53 Fed. Reg. 9873 (Mar. 28, 1988). In the case of
paragraphs (1) and (2)(A) of section 62(a), the allowable
deduction already provided under another section of the Code is
the general provision for the deductibility of trade or business
expenses found in section 162(a).
The specific restriction to which employees are subject
under section 62(a)(2)(A) is that their deductions allowed in
computing adjusted gross income are restricted to those expenses
paid or incurred “in connection with the performance by him of
services as an employee, under a reimbursement or other expense
allowance arrangement with his employer.”8 This language sets
8Before 1986, sec. 62(2)(B) allowed employees to deduct from
gross income in arriving at adjusted gross income travel expenses
while away from home, transportation expenses, and expenses
incurred by “outside salesmen” engaged in soliciting business for
the employer’s place of business. Sec. 62(2)(B), (C), and (D),
I.R.C. 1954. As a result of the enactment of the Tax Reform Act
(continued...)
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