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ordinary and necessary business expenses of an employee for
lodging, meals, and/or incidental expenses incurred while
traveling away from home will be deemed substantiated for
purposes of section 274(d). These revenue procedures also
provide an optional method for employees and self-employed
individuals to substantiate the amount of business, meal, and
incidental expenses incurred while traveling away from home.
Petitioner relies on these revenue procedures to support the per
diem expense deductions claimed for the days he was in San Diego
during the years at issue.4
While section 4.01 of each of the aforementioned revenue
procedures authorizes the per diem method to substantiate
lodging, meal, and incidental costs, the per diem method is
available only to employers who pay a per diem allowance in lieu
of reimbursing the actual expenses an employee incurs while
traveling away from home. Therefore, petitioner’s claimed San
Diego expenses are not included within this provision because he
was self-employed in connection with the air racing activity.
Although petitioner, as a self-employed individual, is entitled
to rely on the per diem method allowed under section 4.03 of each
of the aforementioned revenue procedures, such reliance is
4 Petitioner repeatedly made reference to Rev. Proc. 93-
50, 1993-2 C.B. 586; however, this revenue procedure was not in
effect for any of the years at issue but, rather, was effective
from Jan. 1 through Dec. 31, 1994.
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