Edward D. Clark - Page 11

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          Section 274(d) generally disallows any deduction under section              
          162 for, among other things, “any traveling expense (including              
          meals and lodging while away from home)” unless the taxpayer                
          complies with stringent substantiation requirements as to the               
          amount, time and place, and business purpose of the expense.                
          Sec. 274(d)(1).  Section 274(d) authorizes the Secretary to                 
          provide by regulations that some or all of these substantiation             
          requirements “shall not apply in the case of an expense which               
          does not exceed an amount prescribed pursuant to such                       
               Under the applicable section 274 regulations, the                      
          Commissioner is authorized to prescribe rules under which                   
          optional methods of computing expenses, including per diem                  
          allowances for ordinary and necessary expenses for traveling away           
          from home, may be regarded as satisfying the substantiation                 
          requirements of section 274(d).  Sec. 1.274-5(j), Income Tax                
          Regs.  Under this authority, the Commissioner issued Rev. Proc.             
          2001-47, 2001-2 C.B. 332 (applicable to petitioner’s travel                 
          January through September 2002); Rev. Proc. 2002-63, 2002-2 C.B.            
          691 (applicable to petitioner’s travel October 2002 through                 
          October 2003); Rev. Proc. 2003-80, 2003-2 C.B. 1037 (applicable             
          to petitioner’s travel November 2003 through September 2004); and           
          Rev. Proc. 2004-60, 2004-2 C.B. 682 (applicable to petitioner’s             
          travel October through December 2004) (collectively, the                    

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