Rev. Rul. 68-663

A civilian employee of the Federal government traveled away from his post of duty on official business for a one-day trip. He left his post of duty at 9:00 a.m. and returned at 10:00 p.m., incurring expenses for his noon and evening meals. As a result of such travel, he was paid a per diem allowance pursuant to section 6 of the Standardized Government Travel Regulations, which authorizes the payment to a Federal employee of a per diem subsistence allowance to cover the cost of meals while traveling on official business for a period of six hours or more duration, provided the trip begins before 6:00 a.m. or terminates after 8:00 p.m. The per diem rate payable under this provision is adjusted downward from the maximum rate otherwise allowable for travel expenses in order to reflect the fact that the employee does not incur lodging expenses.

In United States v. Correll, et ux. , 389 U.S. 299 (1967), Ct. D. 1917, C.B. 1968-1, 64, the Supreme Court of the United States upheld the position of the Internal Revenue Service that the taxpayer may deduct the cost of meals as `traveling expenses' incurred in the pursuit of his business while `away from home' under section 162(a) of the Internal Revenue Code of 1954, only if his trip requires him to stop for sleep or rest. In sustaining the validity of this position, the Court stated that this interpretation of the statutory phrase `away from home' achieved ease and certainty of application and also substantial fairness, for the sleep or rest rule places all one-day travelers on a similar tax footing.

Held, the meal expenses incurred by the Federal employee on the one-day trip that did not require a stop for sleep or rest are not deductible as business traveling expenses under section 162(a) of the Code. However, if the Federal employee had been absent on official business from his post of duty for a period of time that did require him to stop for sleep or rest, the amount he expended both for meals and for lodging would be deductible as business traveling expenses under section 162(a) of the Code.

I.T. 1380, C.B. I-2, 88 (1922), which provides that field officers of the Internal Revenue Service may deduct the amounts expended for meals and lodging for such days as they receive per diem allowances, is hereby superseded.