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those incurred on behalf of the employer under a reimbursement
arrangement with that employer); Lickert v. Commissioner, T.C.
Memo. 1964-47 (inquiring into whether the expenditures were
incurred on behalf of the employer’s business).
The conclusion that the expense must be incurred “in
connection with” the duties performed by “an employee of the
employer” is also confirmed by the legislative history of
reimbursement arrangements. The predecessor of section
62(a)(2)(A) was section 22(n)(3) of the 1939 Code, as amended by
the Individual Income Tax Act of 1944, ch. 210, 58 Stat. 235. In
the House report, Congress described as an example of the kinds
of expenses a taxpayer could deduct from gross income under
section 22(n)(3) those incurred “for his employer”. H. Rept.
1365, 78th Cong., 2d Sess. (1944), 1944 C.B. 821, 838-839
(emphasis added).
Similarly, in describing a technical amendment to section
62(a)(2)(A) by the Technical and Miscellaneous Revenue Act of
1988, Pub. L. 100-647, 102 Stat. 3342, the Senate report
described the qualifying expenses under a reimbursement
arrangement as those incurred “on behalf of the employer”.
S. Rept. 100-445, at 7 (1988) (emphasis added).
Finally, the conference report accompanying enactment of
section 62(c) describes a “true reimbursement” as one in which
the employee is reimbursed for “business expenditures incurred on
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