Rev. Rul. 54-540

Advice is requested whether Members of Congress of the United States are entitled to exemption from the tax on the transportation of persons imposed by section 3469 of the Internal Revenue Code of 1939 on amounts paid for their transportation, (1) when coming to Washington at the beginning of a session and returning home at the end of a session for which they receive a mileage allowance, and (2) when traveling on official business during a session.

Pursuant to the amendment of section 3469(f)(1) of the Code by section 307 of the Revenue Act of 1943, C.B. 1944, 756, at page 788, amounts paid on or after June 1, 1944, for the transportation of persons or for seating or sleeping accommodations in connection therewith are no longer exempt by reason of the fact that such transportation is furnished to the United States, or paid for by a person who is entitled to receive reimbursement from the United States. However, pursuant to the provisions of section 307(c) of the Revenue Act of 1943, as amended by section 303 of the Revenue Act of 1945, C.B. 1945, 546, at page 563, the Secretary of the Treasury has continued the exemption as to any payment for the transportation of persons furnished to the United States upon a United States Government transportation request. (See authorization of the Secretary of the Treasury, dated June 20, 1947, C.B. 1947-2, 211 and Mim. 6194, C.B. 1947-2, 210.)

In view of the foregoing, the tax applies to amounts paid by Members of Congress for transportation on a mileage allowance basis at the beginning or at the end of a session of Congress. The tax also applies to amounts paid by Members of Congress for travel on official business during a session of Congress, unless such transportation is furnished on United States Government transportation requests.