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
UAL CORPORATION AND SUBSIDIARIES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
UAL Corp. v. Comm'r
No. 18573-98
United States Tax Court
117 T.C. 7; 2001 U.S. Tax Ct. LEXIS 33; 117 T.C. No. 2; 82 T.C.M. (CCH) 4130;
July 13, 2001, Filed
COHEN and COLVIN, JJ., agree with this dissenting opinion.
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…
Also in this document: Concurrence.
2Cases cited27 opinions
- United States v. CorrellSupreme Court of the United States · 1967
- Electric & Neon, Inc. v. CommissionerUnited States Tax Court · 1971
- Commissioner v. KowalskiSupreme Court of the United States · 1977
- Paula Constr. Co. v. CommissionerUnited States Tax Court · 1972
- Henry Schwartz Corp. v. CommissionerUnited States Tax Court · 1973
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