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Rev. Proc. 2001-47, sec. 6.01, 2001-2 C.B. at 337, and Rev.
Proc. 2002-63, sec. 6.01, 2002-2 C.B. at 698, each provide that
the Federal M&IE rate will be applied, with stated exceptions, in
the same manner as applied under the Federal Travel Regulations,
41 C.F.R. sec. 301-11, in effect at the time each respective
revenue procedure was released.
Deductions for Meals and Incidental Expenses
American Ship furnished petitioner with lodging and meals
without charge while he worked on the President Wilson in 2002.
Matson Navigation provided meals to petitioner without charge
while he worked as a relief port engineer on its vessels docked
in Honolulu for several days in 2002. 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 a vessel in 2002.
Petitioners argue that the applicable revenue procedures,
which are cited above, in conjunction with the Federal Travel
Regulations, 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 employers. Section
301-11.17 of the Federal Travel Regulations provides 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
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