- 2 -
At trial, Ps presented evidence as to the
estimated, nonmeal travel expenses incurred by C’s
drivers. C’s drivers testified as to the average
amount of their per diem allowance that they spent on
items such as lodging, truck parking, showers, laundry,
and Federal Express charges.
Held: Despite the presentation of evidence at
trial as to the estimated, nonmeal travel expenses
incurred by C’s drivers, Ps have failed to establish a
basis for deducting 80 percent of the per diem
allowance paid to the drivers. Beech Trucking Co. v.
Commissioner, 118 T.C. 428 (2002), followed.
Held, further, Pursuant to Rev. Proc. 94-77, 1994-
2 C.B. 825, Rev. Proc. 96-28, 1996-1 C.B. 686, and Rev.
Proc. 96-64, 1996-2 C.B. 427, Ps may only deduct 50
percent of the per diem allowance paid to the drivers.
Held, further, sec. 4.02(5) of Rev. Proc. 94-77,
1994-2 C.B. 825, Rev. Proc. 96-28, 1996-1 C.B. 686, and
Rev. Proc. 96-64, 1996-2 C.B. 427, is not invalid.
Held, further, Ps have not substantiated the
actual travel expenses incurred by the drivers pursuant
to sec. 274(d), I.R.C.
Held, further, the portion of the per diem
allowance that Ps estimate is allocated to nonmeal
travel expenses may not be deducted in full.
J. Betsy Meacham and Roger D. Rowe, for petitioners.
Caroline R. Krivacka, for respondent.
VASQUEZ, Judge: Respondent disallowed deductions of
$836,7292 for the taxable year ending December 31, 1995; $828,067
2 Unless otherwise indicated, all section references are to
(continued...)
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