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expenses incurred in connection with Mr. Claborn’s employment
with ResourceTek LLC.7
B. Expenses Relating to Mr. Claborn’s Employment with RWE
NUKEM Corporation
Petitioners claim a deduction for automobile expenses
incurred by Mr. Claborn while he was temporarily employed by RWE
Nukem Corporation from October 20, 2003, to the end of that year.
As mentioned above, passenger automobiles are listed property
under section 280F subject to the strict substantiation
requirements of section 274(d).
At trial, Mr. Claborn presented a pocket calendar in which
he made notations of the mileage that he drove to and from work
7 On Mar. 8, 2007, petitioners filed a motion to reopen the
record and submitted a Form W-2, Wage and Tax Statement, which
they assert reflects that Mr. Claborn was not paid a per diem
allowance while employed by ResourceTek LLC. Although, in the
spirit of sec. 7463(a) and Rule 174(b), we will grant that
motion, as explained below, that document does not support
petitioners’ argument. The Form W-2 submitted together with the
motion to reopen reflects that Mr. Claborn received $16,922.50 in
wages, tips, and other compensation for his work at ResourceTek,
LLC, in 2003. The document, a payroll ledger prepared by
Tailored Business, which acted as the payroll and bookkeeping
agent for ResourceTek, LLC, indicates that, while working at
ResourceTek, LLC, Mr. Claborn was paid an untaxed per diem
allowance that amounted to $400 weekly. The payroll ledger also
reflects that Mr. Claborn was paid a total of $19,942.50 for his
work at ResourceTek, LLC, in 2003. Thus, it appears that Mr.
Claborn received $3,020 in the form of an untaxed per diem
allowance. Because Mr. Claborn worked at ResourceTek, LLC, for 7
weeks in 2003 and was paid a $400 weekly allowance, it is unclear
why he was paid $3,020 in untaxed per diem benefits rather than
$2,800. In any event, this discrepancy is to Mr. Claborn’s
benefit, as none of the untaxed per diem allowance was reported
on the Form W-2 or taxed by respondent.
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