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documents entitled “Sailor Travel Statement” to substantiate
their claim to unreimbursed employee expenses. The Sailor Travel
Statement includes the “Supplemental Tug/Barge Sailor Travel
Schedule” reproduced below, authorities upon which petitioners
rely in support of their tax position, a 2002 port list for the
Yabucoa vessel, and a schedule listing ports where petitioner
purportedly was stationed on particular dates in 2002. The
Supplemental Tug/Barge Sailor Travel Schedule, with original
emphases, that petitioners attached to their 2002 return is
reproduced in part below:
Taxpayer is a Merchant Sailor assigned to work aboard a Tug Boat
traveling between ports located on the Atlantic Ocean and
therefore qualifies per attached Rev Proc 2001-47’s
“Transportation Industry Employees” and attached MARIN JOHNSON TAX
COURT DECISION & IRS Publication 463 (Chapter 1 Page 5) to compute
his DEEMED SUBSTANTIATED Out-of-Town Travel Costs by using
attached Pub 1542’s Standard Foreign OCONUS Rates for EACH CITY as
follows:
80 Days x $75 Guayama <San Juan>, Puerto Rico = 6,000.
39 Days x $75 Arecibo <San Juan>, Puerto Rico = 2,925.
44 Days x $57 Guayaquil, Ecuador = 2,508.
25 Days x $76 St. Croix, Virgin Islands= 1,900.
33 Days x $57 Mayaguez <Other>, Puerto Rico= 1,881.
18 Days x $75 San Juan, Puerto Rico = 1,350.
4 Days x $75 Aguirre <San Juan>, Puerto Rico = 300.
5 Days x $57 Yabaccoa <Other>, Puerto Rico= 285.
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Total Sailor Travel Costs Allowed per OCONUS Rates17,149.
LESS EMPLOYER PROVIDED REIMBURSEMENTS <2,852>
--------
Sailor Travel Allowance in Excess of Reimbursements 14,297.
As a MERCHANT SAILOR, taxpayer was required by his employer to
travel to various locations to meet his ships. Per IRS Rev Rul
99-7 and attached Marin Johnson Tax Court Decision, his auto
mileage and possibly other travel-related costs are FULLY
DEDUCTIBLE as follows:
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Last modified: March 27, 2008