Rev. Rul. 65-285

Advice has been requested whether individuals who attended the National Conference on Law and Poverty under the circumstances described below are entitled to deduct their out-of-pocket expenses in connection therewith as contributions for Federal income tax purposes.

The Department of Justice and the Office of Economic Opportunity sponsor a National Conference on Law and Poverty. Leading members of the bar, representatives of local community action programs, and professional and business persons who deal with the poor were officially invited by the Attorney General and the Director of the Office of Economic Opportunity to attend and contribute their advice and service regarding methods of meeting legal problems of the poor.

This Conference is a part of the war on poverty which, through the Economic Opportunity Act of 1964, is designed to give all citizens `the opportunity to live in decency and dignity.'

The purpose of the Conference is to stimulate fresh discussions of the problems of the poor; to encourage lawyers and others to support and participate in efforts in their own communities to provide the best possible remedies for these problems; and to show how these remedies may be supported, when necessary, by funds available under the Economic Opportunity Act.

Section 170 of the Internal Revenue Code of 1954 provides, in part, that there shall be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year.

Section 170(c)(1) of the Code defines `charitable contribution' as including a contribution or gift to or for the use of a State, a Territory, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.

Section 1.170-2(a)(2) of the Income Tax Regulations provides, in part, that unreimbursed expenditures, made incident to the rendition of services to an organization contributions to which are deductible, may constitute a deductible contribution. Out-of-pocket transportation expenses, and reasonable expenditures for meals and lodging while away from home, necessarily incurred in the course of rendering donated services to such an organization, are also deductible.

Individuals who are invited and attend the National Conference on Law and Poverty, are rendering gratuitous services to the United States, within the meaning of section 170(c) of the Code.

Accordingly, the out-of-pocket expenses incurred by the invitees for their transportation, meals, and lodging while away from home attending the National Conference on Law and Poverty are deductible under section 170 of the Code in the manner and to the extent therein provided, in computing their taxable income, provided the taxpayer itemizes his deductions.