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The employee need not report on his tax return (either
itemized or in total amount) expenses for travel,
transportation, entertainment, and similar purposes
paid or incurred by him solely for the benefit of his
employer for which he is required to account and does
account to his employer and * * * for which the
employee is paid through advances, reimbursements, or
otherwise, provided the total amount of such advances,
reimbursements, and charges is equal to such expenses
* * *.
At trial, respondent called Mr. Ruess and Mr. Osburn as
witnesses to corroborate the amount reported on the Form 1099
issued by Southeast to Mr. Fugitt for 1999. In addition to the
testimony of these witnesses, records prepared and maintained by
Southeast were introduced that detailed the sales made by Mr.
Fugitt while employed by Southeast. Mr. Osburn maintained a
contemporaneous record for Southeast at the time of each sale for
purposes of determining Mr. Fugitt’s sales commissions. A
summary of Mr. Fugitt’s sales commissions and per diem payments
for 1999 was prepared by Mr. Osburn, which further supported the
Form 1099 issued by Southeast.7
Mr. Fugitt did not keep, and thus did not produce, any
records to prove his claims. He does not contend that he
provided Southeast with receipts to account for his actual
expenses incurred while at the RV shows. Mr. Fugitt has failed
to present any credible evidence that the amount reported on the
Form 1099 did not properly reflect income he earned while working
7 This evidence would satisfy any burden of production that
respondent may have had under sec. 6201(d).
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Last modified: May 25, 2011