Michael L. and Ann Burski - Page 15




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          respondent did not allow any deduction were incurred for ordinary           
          and necessary business purposes in the course of petitioner’s               
          carrying on a trade or business as either an independent                    
          contractor or an employee of IDA.                                           
               Although section 162(a) is not mentioned in the notice, its            
          provisions are implicit in respondent’s explanation that                    
          petitioner failed to establish that he incurred or paid the                 
          disallowed amounts for ordinary and necessary business purposes             
          and that any amount qualifies as a business expense as specified            
          under the provisions of the Internal Revenue Code.  The notice              
          alerted petitioner to respondent’s challenge to the bona fides of           
          the disallowed amounts as travel expenses.  The factual bases and           
          rationale required to establish that the amounts petitioner paid            
          for driving between Lancaster and Alexandria and for lodging and            
          meals while working in Alexandria were ordinary and necessary               
          business expenses incurred in his business of providing services            
          to IDA as an independent contractor are identical to the factual            
          bases and rationale necessary to establish that they were                   
          ordinary and necessary business expenses incurred in the business           
          of providing services to IDA as an employee.  In either case                
          petitioner must show that (1) he  was away from home when he                
          incurred the expense, (2) the expense is reasonable and                     
          necessary, and (3) the expense was incurred in pursuit of a trade           








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