UAL Corp. v. Comm'r
United States Tax Court
U, an international airline, paid its pilots and flight attendants (collectively, employees) per diem allowances. U paid the allowances to all employees; i.e., those who departed from and returned to their home bases on the same day and those who departed from and returned to their home bases on different days. U neither required nor received substantiation from the employees as to their uses of the allowances.
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U, an international airline, paid its pilots and flight attendants (collectively, employees) per diem allowances. U paid the allowances to all employees; i.e., those who departed from and returned to their home bases on the same day and those who departed from and returned to their home bases on different days. U neither required nor received substantiation from the employees as to their uses of the allowances. HELD: U may deduct the per diem allowances as personal service compensation under sec. 162(a)(1), I.R.C.
1Opinion of the Court
Laro, Judge:
Respondent determined deficiencies of $1,478,718, $61,867,523, $1,751,161, and $45,981,293 in petitioner’s 1983, 1984, 1986, and 1987 Federal income taxes, respectively.1 Following concessions, we must decide whether petitioner may deduct the per diem allowances paid to its flight attendants and pilots (collectively, employees) for day trips and overnight trips (as defined below). We hold it may deduct the per diem allowances as personal service compensation under section 162(a)(1).2
FINDINGS OF FACT
Most facts were stipulated. The parties’ stipulation of facts and the exhibits…
2Cases cited4 opinions
- Commissioner v. KowalskiSupreme Court of the United States · 1977
- Paula Constr. Co. v. CommissionerUnited States Tax Court · 1972
- Kowalski v. Comm'rUnited States Tax Court · 1975
- Robert J. Kowalski and Nancy A. Kowalski v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1976
3Cited by7 opinions
- Beech Trucking Co. v. Comm'rUnited States Tax Court · 2002
- Troutman v. Comm'rUnited States Tax Court · 2004
- Beech Trucking Co. v. Comm'rUnited States Tax Court · 2002
- Beech Trucking Company, Inc., Arthur Beech, Tax Matters Person v. CommissionerUnited States Tax Court · 2002
- UAL Corp. v. Comm'rUnited States Tax Court · 2001
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