Beech Trucking Co. v. Comm'r
United States Tax Court
P, a trucking company, leases its drivers from an affiliated company. P compensates the drivers at a rate of 24 to 26 cents per mile dispatched, of which amount 6.5 cents is designated as a per diem allowance.
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P, a trucking company, leases its drivers from an affiliated company. P compensates the drivers at a rate of 24 to 26 cents per mile dispatched, of which amount 6.5 cents is designated as a per diem allowance. R does not dispute that P's per diem payments are ordinary and necessary business travel expenses that are deemed substantiated pursuant to Rev. Proc. 94-77, 1994-2 C.B. 825, and Rev. Proc. 96-28, 1996-1 C.B. 686 Held: On the facts involved herein, P is the common law employer of the drivers and therefore is subject to the 50- percent limitation of sec. 274(n), I.R.C., to the extent the…
1Opinion of the Court
Thornton, Judge:
By notice of final S corporation administrative adjustment (FSAA), respondent determined adjustments of $251,885 and $286,878 to the ordinary income of Beech Trucking Co., Inc. (Beech Trucking), for 1995 and 1996, respectively. At issue is the amount that Beech Trucking may deduct with respect to per diem allowances it provided drivers that it leased from an affiliated company, and, more particularly, whether the 50-percent limitation of section 274(n) applies to the total amount of the per diem payments. Subsumed in these issues is the question of whether the section 274(n)…
2Cases cited19 opinions
- United States v. Mead Corp.Supreme Court of the United States · 2001
- Nationwide Mutual Insurance v. DardenSupreme Court of the United States · 1992
- Bartels v. BirminghamSupreme Court of the United States · 1947
- Professional & Executive Leasing, Inc., an Idaho Corporation, Petitioner v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1988
- Professional & Executive Leasing v. CommissionerUnited States Tax Court · 1987
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