- 4 - DriAll's reimbursement policies for business travel, meals and entertainment, and general business expenses required an employee to obtain preapproval for the expenses before incurring them. Preapproval for business travel and general business expenses could be obtained from the accounting department and the head of the department incurring the expense. Meals expenses in excess of $35 per day and any entertainment expenses also required preapproval, but only from the accounting department. Mr. Applegate was the head of his department and the head of accounting and preapproved his own expenses. During 1999, Mr. Applegate paid the following expenses with respect to his employment with DriAll: Item Amount Mileage $17,967.84 Travel 6,500.27 Business expenses 5,111.39 Meals & entertainment 1,770.00 $31,349.50 Mr. Applegate gave Ms. Wang the receipts for his expenses, and on their 1999 Schedule A, Itemized Deductions, petitioners claimed a total deduction for unreimbursed employee business expenses of $31,349.50, less the 2-percent AGI floor of $2,132.24, or $29,217.26. Mr. Applegate could have received reimbursement from DriAll for these expenses instead of deducting them on their tax return. Respondent disallowed all of petitioners' claimed deductions for unreimbursed employee business expenses.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011