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which a taxpayer may use a specified amount or amounts for M&IE
paid or incurred while traveling away from home in lieu of
substantiating the actual costs under section 274(d).12
For purposes of section 1.274-5(g) and (j)(1) and (3),
Income Tax Regs., Rev. Proc. 2000-39, 2000-2 C.B. 340, Rev. Proc.
2001-47, 2001-2 C.B. 332, Rev. Proc. 2002-63, 2002-2 C.B. 691,
and Rev. Proc. 2003-80, 2003-2 C.B. 1037 (hereinafter referred to
collectively as the revenue procedures),13 authorize various
methods a taxpayer may elect to use, in lieu of substantiating
actual expenses, for deemed substantiation of the taxpayer’s M&IE
incurred while traveling away from home.14
12 Par. (j)(3) of sec. 1.274-5, Income Tax Regs., applies to
incidental expenses incurred after Sept. 30, 2002. Sec. 4.03 of
Rev. Proc. 2000-39, 2000-2 C.B. at 342, and of Rev. Proc. 2001-
47, 2001-2 C.B. at 334, provides the method a taxpayer may use in
lieu of substantiating the costs for incidental expenses for
prior periods.
13 Rev. Proc. 2000-39, supra, and Rev. Proc. 2001-47, supra,
apply for the years at issue 2001 and 2002, respectively. Rev.
Proc. 2002-63, supra, and Rev. Proc. 2003-80, supra, apply for
the year at issue 2003.
14 Rev. Proc. 2000-39, supra, is effective for M&IE
allowances paid or incurred on or after Oct. 1, 2000. Rev. Proc.
2001-47, supra, superseding Rev. Proc. 2000-39, supra, restates
the relevant sections of Rev. Proc. 2000-39, supra. Rev. Proc.
2002-63, supra, superseding Rev. Proc. 2001-47, supra, restates
the relevant sections of Rev. Proc. 2001-47, supra, except for
modifications discussed in this Opinion. Rev. Proc. 2003-80,
supra, superseding Rev. Proc. 2002-63, supra, restates the
relevant sections of Rev. Proc. 2002-63, supra, except for
modifications discussed in this Opinion.
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