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C.F.R. secs. 301-311, in effect at the time each respective
revenue procedure was released.
Deductions for Meals and Incidental Expenses
Petitioner’s employer, Hornbeck, furnished him with lodging
and meals without charge while he worked on its vessel during the
years in issue. Hornbeck also provided to petitioner uniforms
and safety equipment required in his employment. Although
petitioner did not pay for his meals while at sea or while docked
in ports, petitioners deducted the full M&IE rate for each day
that petitioner worked aboard the tugboat during the years in
issue.
Petitioners argue that the applicable revenue procedures, in
conjunction with the Federal Travel Regulations, 41 C.F.R. sec.
301-11.17, permit them to deduct the full applicable M&IE rate
for work-related travel even though all of petitioner’s meals
were provided to him free of charge by his employer. The Federal
Travel Regulations provide that a meal provided by a common
carrier or a complimentary meal provided by a hotel or motel does
not affect a taxpayer’s otherwise allowable per diem expense
deduction for meals. 41 C.F.R. sec. 301-11.17 (2000); 41 C.F.R.
sec. 301-11.17 (2002); 41 C.F.R. sec. 301-11.17 (2003).
Petitioner’s tugboat is not a common carrier, and he did not
receive meals at a hotel or motel. Additionally, the Federal
Travel Regulations require that a Federal employee’s M&IE rate be
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