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9(...continued)
“overnight” trips, as that term is explained in Revenue
Ruling 54-497, C.B. 1954-2, 75, at 78-79, for the
reason that Williams’ trips did not necessitate his
absence from his home terminal for a minimum period
which lasted substantially longer than an ordinary
days’ work and during which his duties required him to
obtain necessary sleep in Atlanta.
The court concluded, however, that Williams had
satisfied the dual test prescribed by the Service since
his 16-hour absence on such round trips (including one
hour for discharging his duties before leaving, and
after returning to, his home terminal) was
substantially longer than an ordinary workday, and it
was reasonably necessary for Williams to sleep during
his layover in order to carry out his assignment, even
though there was no statute, regulation or railroad
order requiring him to sleep and rest prior to his
return run.
The Service agrees with the court in interpreting
Revenue Ruling 54-497 as allowing the deduction in this
case and concurs in general with the court's
understanding that the “correct rule” governing the
deductibility of such expenses is as follows:
If the nature of the taxpayer’s
employment is such that when away from home,
during released time, it is reasonable for
him to need and to obtain sleep or rest in
order to meet the exigencies of his
employment or business demands of his
employment, his expenditures (including
incidental expenses, such as tips) for the
purpose of obtaining sleep or rest are
deductible traveling expenses under section
162(a)(2) of the 1954 Code.
However, the Service does not consider the brief
interval during which an employee may be released from
duty for the purpose of eating rather than sleeping as
constituting an adequate rest period to satisfy the
“overnight” rule as a test for the deductibility of
meal expenses on business trips completed within one
day. * * *
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