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section 4.03 of the revenue procedures. Therefore, his M&IE
incurred during the years at issue are subject to the section
274(n)(1) 50-percent limitation.
In the alternative, petitioner argues that if the 50-percent
limitation under section 274(n)(1) applies, he is eligible for an
exception. Section 274(n)(2) provides that paragraph (1) shall
not apply to any expense if:
(E) such expense is for food or beverages--
(i) required by any Federal law to be
provided to crew members of a commercial
vessel,
(ii) provided to crew members of a
commercial vessel--
(I) which is operating on the Great
Lakes, the Saint Lawrence Seaway, or any
inland waterway of the United States,
and
(II) which is of a kind which would
be required by Federal law to provide
food and beverages to crew members if it
were operated at sea,
* * * * * * *
Clauses (i) and (ii) of subparagraph (E) shall not apply to
vessels primarily engaged in providing luxury water
transportation (determined under the principles of
subsection (m)). * * *
The evidence failed to show he qualified for an exception to
the section 274(n)(1) 50-percent limitation. He did not
demonstrate the company was required by any law to provide food
or beverages to him or that the Clipper, the Clipper III, or the
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