DocketNumber: No. 8372-99S
Citation Numbers: 2001 Tax Ct. Summary LEXIS 181, 2001 T.C. Summary Opinion 75
Judges: \"Carluzzo, Lewis R.\"
Filed Date: 6/4/2001
Status: Non-Precedential
Modified Date: 4/18/2021
2001 Tax Ct. Summary LEXIS 181">*181 PURSUANT TO INTERNAL REVENUE CODE SECTION 7463(b), THIS OPINION MAY NOT BE TREATED AS PRECEDENT FOR ANY OTHER CASE.
CARLUZZO, SPECIAL TRIAL JUDGE: This case was heard pursuant to the provisions of
Respondent determined deficiencies of $ 4,580 and $ 5,259, respectively, in petitioner's 1995 and 1996 Federal income taxes, and an addition to tax of $ 100 under
BACKGROUND
Some of the facts have been stipulated and are so found. At the time the petition was filed, 2001 Tax Ct. Summary LEXIS 181">*182 petitioner resided in San Diego, California.
Petitioner is a special agent for the Naval Criminal Investigative Service (NCIS). According to recruiting materials published by NCIS,
During their careers, NCIS special agents can look forward to a
wide range of assignments, including some overseas, in locations
such as Great Britain, Italy, and Japan. Tours of duty inside
the continental United States average from four to six years,
depending upon the needs of NCIS. Overseas tours vary from two
to three years generally, with opportunities to extend, again
depending on the needs of the service. Afloat tours, and tours
in a limited number of isolated locations overseas, are
generally limited to one year. With the exception of afloat and
isolated tours, special agents are accompanied by their
families.
Petitioner's career as an NCIS special agent fits the above description. He was hired in 1982 with a post of duty in Pearl Harbor, Hawaii. His first 1-year afloat tour aboard an aircraft carrier began in 1984. He was assigned to the Philippines from 1985 until 1987 and then assigned to a 6-month2001 Tax Ct. Summary LEXIS 181">*183 afloat tour on board an aircraft carrier. In 1988, he was assigned to Virginia Beach, Virginia, where he purchased a home and remained until 1993. In April 1993, he was relocated to Guam, where he remained throughout the years in issue. His initial assignment to Guam was for 2 years, but it was extended for a year. In 1996, he was transferred to San Diego, California, where he remained until his transfer to Miami, Florida in 1999.
In connection with being relocated to Guam, petitioner was authorized real estate relocation expenses by NCIS if he elected to sell his house in Virginia Beach, which he did not do. As a civilian Federal employee, he was not entitled to, and did not receive, a living quarters allowance while in Guam. His rate of pay, however, was increased by 25 percent because of a "non-foreign cost of living allowance/post differential".
Petitioner's 1995 Federal income tax return was timely filed; his 1996 Federal income tax return was due on April 15, 1997, and filed on December 10, 1997. The expenses that petitioner incurred for meals and lodging while living in Guam during the years in issue are deducted as unreimbursed employee business expenses on his Federal income2001 Tax Ct. Summary LEXIS 181">*184 tax returns for those years.
In the notice of deficiency, respondent disallowed the deductions for meals and lodging expenses claimed for each year in issue. According to the explanation in the notice, petitioner's "travel/living expenses while in Guam are not deductible" because petitioner's assignment to Guam was "for a period of at least 24 months". For 1996, respondent also imposed a $ 100 addition to tax under
DISCUSSION
Ordinarily, a taxpayer may not deduct personal expenses, such as the costs of meals and lodging. See
For each year in issue, petitioner claimed deductions for meals and lodging expenses incurred in Guam. Respondent concedes that the amounts deducted each year were paid or incurred for the designated purposes. The parties disagree as to whether the meals and lodging expenses were incurred while petitioner was traveling away from his tax home for business purposes.
Generally, a taxpayer's tax home is determined by the location of the taxpayer's regular or principal (if more than one regular) place of business regardless of where the taxpayer's residence is located. See
According to petitioner Guam was not his tax home during the years in issue because his assignment there was temporary. See
As an NCIS special agent, petitioner was required to relocate, and did so, regularly during his career. Given his employment history, we can understand why petitioner might consider all of his assignments to be temporary, as that word is commonly used and understood. Nevertheless, because petitioner's assignment to Guam was for a period that exceeded 1 year, it cannot be treated as a temporary assignment for Federal income tax purposes. Consequently, when he was transferred from Virginia Beach to Guam, Guam became his regular place of business and therefore his tax home. It follows that he is not entitled to deductions for meals and lodging expenses while working in Guam, 2001 Tax Ct. Summary LEXIS 181">*188 and respondent's determinations in this regard are sustained.
Petitioner's 1996 Federal income tax return was due on or before April 15, 1997, see
Petitioner's 1996 return was filed more than 60 days after April 15, 1997. The amount required to have been shown as a tax on that return exceeds $ 100. In the notice of deficiency, respondent determined that petitioner2001 Tax Ct. Summary LEXIS 181">*189 was liable for a $ 100 addition to tax under
Reviewed and adopted as the report of the Small Tax Case Division.
Based on the foregoing, Decision will be entered for respondent.
1. For tax years ending after Aug. 5, 1997, the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1204(a), 111 Stat. 788, 995, amended