Wickie B. Whalen - Page 4

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               On Schedule A, petitioner reported unreimbursed employee               
          expenses of $26,188.74.  Petitioner itemized the expenses on Form           
          2106 as follows:  $19,779.66 of travel expenses, $5,161.32 of               
          business expenses, and $1,247.761 of meals and entertainment                
          expenses.  Subject to the 2 percent of adjusted gross income                
          limitation, petitioner claimed total unreimbursed employee                  
          business expense deductions of $24,408.44.  He did not report any           
          reimbursements received from the college.                                   
               The parties agree that petitioner spent a total of $3,404.51           
          on hotels during 2002 and claimed this amount as part of the                
          travel expenses listed on Form 2106 for 2001.  The parties also             
          agree that petitioner spent $2,606.61 on other expenses and                 
          included this amount as part of the other business expenses                 
          claimed on his Form 2106.                                                   
          B.   The College’s Reimbursement Policies                                   
               As relevant herein, the college had two reimbursement                  
          policies in effect during 2001.  Under Procedure 3280,                      
          Reimbursement to College Employees for College-Related Purchases            
          Not Exceeding $200 (small purchase reimbursement policy),                   
          petitioner was required to obtain advance supervisory approval              
          for purchases of college-related materials and services not                 



               1The $1,247.76 petitioner reported for meals and                       
          entertainment expenses is one-half of the total amount petitioner           
          spent for meals and entertainment expenses during 2001.                     




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