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adjusted for meals provided by the Government by deducting
appropriate amounts for each meal provided, but not to less than
the amount allowed for incidental expenses. Johnson v.
Commissioner, supra at 227-228; Federal Travel Regulations, 41
C.F.R. sec. 301-11.18 (2000); 41 C.F.R. sec. 301-11.18 (2002); 41
C.F.R. sec. 301-11.18 (2003). Because, as petitioners
acknowledge, the revenue procedures regarding M&IE rate
deductions for non-Government employees are to be applied
according to the Federal Travel Regulations for Federal
employees, the regulations require that petitioner decrease the
M&IE rate deduction otherwise allowable to account for meals
provided by petitioner’s employer.
Petitioners also argue that this issue is novel to the
Court. We disagree. In Johnson v. Commissioner, supra, the
taxpayer, also a merchant seaman, deducted the full Federal M&IE
rates on his return, even though all of his meals were provided
to him free of charge by his employer. We held that, because the
taxpayer’s actual expenses consisted solely of incidental
expenses, his use of the M&IE rates to calculate his deductions
for business expenses due to travel away from home was limited to
the incidental portion of those rates. Id. at 210-211. The
taxpayer established that he had incurred incidental expenses
during his travel away from home and was allowed to use the
incidental portion of the M&IE rates to substantiate those
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