STJ Diana L (“The Taxpayer’s Friend”) Leyden examines the factification underlying the title of this blogpost in an off-the-bench designated hitter, Forrest Wade Gillespie, Docket No. 6174-18S, filed 6/28/19.

Forrest drives long-haul from CA to UT, and spends 339 (count ‘em, 339) days of the year at issue on the road, mostly sleeping in the compartment of the truck, occasionally sleeping in a rented room in Sandy, UT, paying out-of-pocket for minor repairs so the trucking company doesn’t dock his bonus which they pay, and renting a car to “see the sites” (I guess he meant “see the sights”) when his truck was in for major repairs or when he didn’t have a load to haul.

USDOT requires rest periods.

“Petitioner testified that regulations required that truck drivers not drive for more than 11 hours without resting and then had to rest, without driving, for 10 hours. Further, once a truck driver drove for 70 hours, he had to rest for 34 hours. [His company] accounted for its truck driver’s driving and off duty time in a daily log.” Order, transcript, at pp. 5-6.

Forrest’s unreimbursed employee expenses go down. The minor repairs could have been reimbursed. His meals and room rentals weren’t for travel. Because he had no home.

“The purpose of the deduction for expenses incurred away from home is to alleviate the burden on the taxpayer whose business requires him to maintain two homes and therefore incur duplicate living expenses. Kroll v. 25 Commissioner, 49 T.C. 557, 562 (1968).” Order, transcript, at p. 13.

“…petitioner did not have a principal place of business. He was a long-distance truck driver and was on the road 339 days out of the year. Petitioner was not required to return to [his boss’] principal location and receive his driving assignments at the end point of a previous assignment. Thus, because of the nature of his employment petitioner did not have a principal place of business in [year at issue]. See Howard v. Commissioner, T.C. Memo. 2015-38.” Order, transcript, at p. 14.

So Forrest’s deductions, mostly unsubstantiated, fail.

But IRS has feet of Clay, so they lose the Section 6751(b) Boss Hossery.

“Respondent has presented evidence that the section 6662(a) penalty was ‘personally approved (in writing) by the immediate supervisor of the individual making such determination’ on November 6, 2017. Respondent also provided evidence that the 30-day letter, the first time the IRS proposed the accuracy-related penalty, was dated October 2, 2017, before the date of the managerial approval. Respondent has failed to meet his burden of production.” Order, transcript, at p. 15.

For the story of Clay, see my blogpost “Indians Not Taxed – Not!” 4/24/19.

For the title of this blogpost, see Dave Dudley’s 1981 classic about various over-the-counter medications that speed to your side the food you eat, the clothes you wear and the flickering screens whereon appear these words of wisdom.