Armstrong v. Comm'r of Internal Revenue

• Decision Date: 02 March 1965
• Docket Number: Docket Nos. 95014,95015.
• Parties: FRED G. ARMSTRONG, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT
• Court: U.S. Tax Court

43 T.C. 733

FRED G. ARMSTRONG, PETITIONER,

v.COMMISSIONER OF INTERNAL REVENUE, RESPONDENT

Docket Nos. 95014

95015.

Tax Court of the United States.

Filed March 2, 1965.

John Marriott Kline, for the petitioner.

Walter John Howard, Jr., for the respondent.

Petitioner was employed by the Great Northern Railroad as a brakeman. His daily routine included the boarding of a work train in Glasgow, Mont., for a tour of duty of 10 to 16 hours. During that time the train would make a turnaround run covering 250 miles. Petitioner would purchase two meals during the course of a daily trip. Held, the costs of the meals were not deductible under section 162(a)(2), I.R.C. 1954, as petitioner was not ‘traveling * * * while away from home.’

OPINION

FAY, Judge:

The Commissioner determined deficiencies in petitioner's income taxes, as follows:

+--------------------------------+
                ¦Docket No.¦Taxable year ¦Amount ¦
                +----------+-------------+-------¦
                ¦          ¦ended        ¦       ¦
                +----------+-------------+-------¦
                ¦95014     ¦Dec. 31, 1960¦$643.42¦
                +----------+-------------+-------¦
                ¦95015     ¦Dec. 31, 1958¦391.43 ¦
                +----------+-------------+-------¦
                ¦          ¦Dec. 31, 1959¦401.48 ¦
                +--------------------------------+
                

By an amendment to the answer in docket No. 95014, the Commissioner made claim for an increased deficiency in the amount of $219.81. The parties have reached agreement as to the disposition of all issues in this proceeding except one. The remaining issue for decision is whether the costs of meals incurred by petitioner, a railroad brakeman, while on his normal tour of duty are deductible under the provisions of sections 62(2)(B) and 162(a)(2), I.R.C. 1954.

All of the facts have been stipulated, are so found, and the stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference. Those facts necessary to an understanding of our inquiry are recited below.

Petitioner, who resides in Glasgow, Mont., filed his Federal income tax returns for the years in issue with the district director of internal revenue at Helena, Mont. Petitioner was employed by the Great Northern Railroad (hereinafter referred to as the railroad) as a brakeman during the years herein involved. Most of petitioner's trips as brakeman for the railroad were turnaround runs on a local work train which headed east out of the freight division point of Glasgow, Mont., to Wolf Point, Brockton, Bainville, and other intermediate points and returned back to the Glasgow terminal. These turnaround runs covered approximately 250 miles and each run took petitioner away from his home terminal of Glasgow from 10 to 16 hours, or on an average of 13 hours a day. Under the provisions of the work rules of the railroad, petitioner was not allowed to be on duty over 16 hours on these trips. When the local train did not return to Glasgow within the 16 hours due to delays, the railroad relieved the grain crew by another train crew which brought the train into Glasgow.¹ On all of these trips the railroad allowed two stops a day, of 30 minutes each, for meals. Petitioner did not take lunches with him, but purchased his meals in restaurants during these 30-minute stops. The railroad did not reimburse petitioner for the cost of his meals. The parties agree that the costs of the meals in question were $470.10 in 1958, $706.14 in 1959, and $687.25 in 1960.

Petitioner deducted the costs of his meals from gross income in his computations of adjusted gross income. Respondent, in his notices of deficiency, disallowed these deductions.

Petitioner maintains that the costs of his meals were incurred while he was ‘traveling away from home’ and as such as properly deductible under sections 62(2)(B) and 162(a)(2). He further maintains that the respondent has disallowed the deduction because the expenses were incurred while petitioner was not away from home ‘overnight.’ It is petitioner's contention that there is no justification in the statute for the respondent's adding the requirement that before costs of meals can be deducted as traveling expenses the petitioner must be away from home overnight. He relies heavily on Hanson v. Commissioner, 298 F.2d 391 (C.A. 8, 1962), reversing 35 T.C. 413 (1960).

Respondent, on the other hand, contends that before the costs of meals can be deducted as part of traveling expenses, the petitioner must remain away from his home terminal ‘overnight’ or for at least such duration that he cannot reasonably be expected to leave from and return to his home terminal without being released from duty for sufficient time to obtain sleep or rest elsewhere. It is respondent's position that petitioner does not meet either of these tests and, accordingly, the costs of the meals are nondeductible personal expenses under section 262 of the Internal Revenue Code of 1954.

We sustain respondent's determination. We do not reach the question concerning the validity of the ‘overnight’ requirement and therefore Hanson does not apply.

We think this case is controlled by our decisions in Fred Marion Osteen, 14 T.C. 1261 (1950), and Sam J. Herrin, 28 T.C. 1303 (1957). In the Osteen case we stated:

The petitioner was in no essentially different position from the worker who is unable to have one of his meals at home. His regular day's work, though it took him away from his home town, was less than seven hours, perhaps shorter than the work day for the ordinary worker. During that time he had a regular meal. Had he worked and had the meal in a restaurant in Greenville there could be no doubt that the expense would be personal. The fact that the meal was eaten at Charlotte offers no material difference. * * *

We recognize that there are factual differences between the Osteen case and the instant case. However, these differences are very similar to those we discussed in the Herrin case, wherein we stated:

The...