{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACCT 429 Week 7 Project - TO: FROM:AliceyaPerkins RE: Facts...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
TO:  Professor Tracie Hayes FROM:  Aliceya Perkins RE:  Tax Research Memorandum Assignment 1 Facts Tracey is a sales representative for a national pharmaceutical company. She has a rather  large sales territory, and she makes her rounds to her customers using a company-owned  car over a 16- to 19-hour period of time. During these one-day business trips, Tracey will  pull over in a suitable location (such as a park or a rest stop) and take a short nap in the  backseat of her automobile. Issue & Conclusion 1 Is Tracey entitled to deduct the cost of meals purchased during the trip at issue? No, Tracey is not entitled to deduct the cost of meals purchased during the trip at issue. Analysis 1 § 162 of the Internal Revenue Service Code, regulating trade of business expenses states  that: There shall be allowed as a deduction all the ordinary and necessary  expenses paid or incurred during the taxable year in carrying on any trade  or business, including…traveling expenses (including amounts expended  for meals and lodging other than amounts which are lavish or extravagant  under the circumstances) while away from home in the pursuit of a trade  or business. The precedent of the Tax Court, concerning travel related deductions for meals where rest  is involved, was established in United States v. Correll, 1967, 389 U.S. 299 [ 20 AFTR 2d  5845]. Colloquially known as the overnight rule, the Court previously held that a taxpayer  payer does not qualify as one obliged to sleep or rest simply because the length of his trip  tired him, and he stopped by the side of the road for a brief nap. Furthermore, the Internal  Revenue Service is not obligated to oblige a request of a travel related meal expense 
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern