- 3 - 98-64, 1998-2 C.B. 825. The parties stipulated that this full M & IE rate deduction purportedly was supported by a “Sailor Travel Statement” attached to petitioners’ return. After petitioners’ return was filed, Johnson v. Commissioner, 115 T.C. 210 (2000), was issued. During the examination of petitioners’ return, petitioners conceded that they were not entitled to the full M & IE rate deduction as claimed. Instead, petitioners conceded they were entitled to the lesser total amount of $1,978, which represents the “incidental expense” portion of the M & IE rate, as allowed by Johnson v. Commissioner, supra. The $9,169 adjustment in the notice of deficiency represents the subtraction of the “incidental expense” of $1,978 from the $11,147 expense claimed on petitioners’ return. Petitioners now seek a deduction for “actual expenses” incurred while in the course of travel. As this Court noted in Johnson v. Commissioner, supra at 228, “taxpayers, to the extent that the amounts set forth in the revenue procedures fail to reflect the actual cost of their incidental expenditures, are entitled to a deduction for their actual expenses. In such a situation, however, taxpayers must be prepared to meet all the substantiation requirements, including, especially, written documentation as to the amounts of those costs.” The Court goes on to refer to the section 274Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011