Saturday, May 4, 2013

Rosenspan v. United States case brief

Rosenspan v. United States case brief
438 F.2d 905, 1971 U.S. App. 71-1 U.S. Tax Cas. (CCH) P9241; 27 A.F.T.R.2d (RIA) 707

CASE SYNOPSIS: Appellant challenged a dismissal on the merits of an action for refund of income taxes, based on a disallowance of deductions under I.R.C. § 162(a)(2) for food and lodging, brought in the United States District Court for the Eastern District of New York.

FACTS: Plaintiff salesman regularly traveled an extensive sales territory. Five or six times a year, plaintiff returned to New York and spent several days at his employers' offices performing services essential to his work. Plaintiff previously maintained a family home then used his brother's home as his personal residential address and a cousin's address for automobile registration. Plaintiff had no permanent abode anywhere. The Internal Revenue commissioner disallowed plaintiff's deduction for meals and lodging, under I.R.C. § 162(a)(2), because he had no home to be away from while traveling.

The court found that plaintiff's infrequent contacts with New York rendered him ineligible for the deduction as it was intended for persons whose travel costs duplicated expenses that would not be incurred absent being away for business.

CONCLUSION: The court affirmed the district court judgment dismissing appellant's complaint; court could not read statutory language allowing deductions away from home to apply to those without a home.

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