- 15 -
as satisfying the substantiation requirements of section 274(d).
Sec. 1.274(d)-1, Income Tax Regs.; see also sec. 1.274-5T(j),
Temporary Income Tax Regs., 50 Fed. Reg. 46032 (Nov. 6, 1985).
For purposes of these regulations, 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 (hereinafter referred to collectively as the
revenue procedures), authorize various nonmandatory methods that
taxpayers may elect to use, in lieu of substantiating actual
expenses, for deemed substantiation of employee lodging, meal,
and incidental expenses incurred while traveling away from home.7
Beech Trucking Co. v. Commissioner, supra at 434. Under one of
the methods authorized by the revenue procedures, an employee’s
expenses for lodging, meal, and incidental expenses while
traveling away from home will be deemed substantiated when “a
payor (the employer, its agent, or a third party) provides a per
7 Rev. Proc. 94-77, 1994-2 C.B. 825, is effective for per
diem allowances paid on or after Jan. 1, 1995. Rev. Proc. 96-28,
1996-1 C.B. 686, superseded Rev. Proc. 94-77, supra, for per diem
allowances paid on or after Apr. 1, 1996. Rev. Proc. 96-64,
1996-2 C.B. 427, superseded Rev. Proc. 96-28, supra, for per diem
allowances paid on or after Jan. 1, 1997. Rev. Proc. 96-64,
supra, restates the relevant sections of Rev. Proc. 94-77, supra,
and Rev. Proc. 96-28, supra, almost in its entirety. Subsequent
citations to provisions of Rev. Proc. 96-64, supra, will also
refer to provisions of superseded Rev. Proc. 94-77, supra, and
Rev. Proc. 96-28, supra. We note that there are some minor
differences between Rev. Proc. 96-28, supra, and Rev. Proc. 96-
64, supra; however, these differences do not affect the outcome
of this case.
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011