T .C. Su m m ary Op i n io n 2 02 1 -1 8

UNITED STATES TAX COURT

PAUL WARQUE AND M ARIE WARQUE, Pet i t i o n ers v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 6 0 7 6-1 9S. Fi l edJ u l y 8 , 2 0 2 1.

Pau l W arq u e an d M ari e W arq u e, p ro s es e. M i ch ael T. Garret tan d Gret ch en W . Al t en b u rg er, fo r res p o n d en t.

SUM M ARY OPINION COPELAND, Ju d g e: Th i s cas e was h eardp u rs uan t t o th e p ro v i s io n s o f
s ect i on 7 4 6 3 1 o f t h e In t ern al Rev en u e Co d e i n effect wh en th e p et i t i o n was fi l ed
.

1 Un l es s o th erwi s e i nd i cat ed , al l s ect i o n referen ces are t o th e In t ern al Rev enu e Co de (Co d e) i n effect fo r t h e y ears i n i s su e, an d al l Ru l e referen ces are t o th e Tax Co u rt Ru l es o f Pract ice an dPro cedu re. Al l d o l l ar am o u nt s are ro u n d edt o th e n eares td o l l ar. Served 07/08/21-2
-

Pu rs u an t t o s ect i o n 7 4 6 3(b ), th e d eci s i o n t o b e en t eredi s n o trev i ewab le b y an y
o th er co u rt , an dth i s o p i ni o n s h al l n o t b e t reat ed as p reced en tfo r an y o th er cas e. In a n o t ice o f d efi ci en cy i s s u edFeb ru ary 1 0, 2 0 19 , th e In t ern al Rev en u e Serv i ce (IRS o r res p o n d en t ) d et erm in edth e fo l l o wi n g d efi ci en ci es i n Fed eral i n co m e t ax an d s ect i o n 6 6 6 2 (a) accu racy -rel at edp en al t i es fo r p et i t i o n ers Pau l an d M ari e W arq u e:

Year Defi ci en cy Pen al ty s ec. 6 6 6 2 2 0 1 5 $ 1 ,6 8 0 $ 3 3 6 2 0 1 6 2 ,0 1 0 4 0 2 2 0 1 7 2 77 5 5 Aft er co n ces si o ns , th e i s s u e fo r d eci s i o n i s wh et h er t h e W arq u es are en t i t l ed t o d eductu n rei m

b u rs ed em

p l o y ee b us i n es s ex p en ses fo r t hei r 2 0 1 5, 2 0 1 6 , an d 2 0 1 7 t ax ab l e y ears . 2 Back gro u n d So m e fact s h av e b een s t ip u l at ed an dare s o fo u n d. Th e s t ip u l at i o n o f fact s
an d th e at t ach edex h i b i t s are i n co rp o rat edb y th i s referen ce. Wh en th e p et i t i o n
was t i m el y

fi l ed , th e W arq u es were res i d en t s o f Nev ad a.

2 Res p o n d en tco n ced edthe s ec. 6 6 6 2 accu racy -rel at edp en al t i es i n h i s s i m u l t an eo u s o p en i n g b ri ef. Nev ert h el es s, res p on d en tas k s u s t o ru l e t h atth e W arq u es were n eg l i g en t. W e d ecl i n e t o d o s o .-3
-

I. M rs . W arq u e’ s Em p l o ym en t Du ri n g th e y ears i n i ss u e M rs . W arq u e was a h o m em ak er. Sh e h as an
acco u n t in g d eg ree earn ed i n th e Ph i li p pi n es ; h o wev er, s h e h as n ev er t ak en an y cl as s es o n U.S. i n co m e t ax l aws . II. M r. W arq u e’ s Em

p lo ym en t M r. W arq u e h as a b ach el o r’ s d eg ree i n acco u n ti n g earn edfro m th e Un i vers it y

o f Nev ad a, Las Veg as . In2 0 0 9 h e b eg an wo rk i n g as a rev en ue ag en t fo r t h e IRS. Hi s “p o s to f du ty ” was th e IRS ex am i n at i o n o ffi ce i n Lag un a Ni g u el , Cal i fo rn i a; i twas a p erm an en t , n o ts eas o n al , p o s it i on . M r. W arque rem ai n ed
em pl o y edi n th i s p o s i t i o n th ro u g h th e y ears i n i ss u e. He wo rk edi n th e Tax Ex em p tan d Go vern m en tEn t i t i es ex am i n at i o n d i v is i o n . Hi s du t i es i n cl u d ed
ex am i n i n g em

p l o y ee p en s i o n an dret i rem en tp l an s t o d et erm i n e wh et h er t h e p l an s
m etth e qu al i fi cat io n s o f s ect i on 4 0 1(a). He was al so ch arg edwi th m ak i n g

“ d i screp an cy

ad ju s t m en t s ,” wh i ch are ad

ju s t m en t s t o Fed eral i n co m e t ax retu rn s t o
co rrect a d i s crep an cy

b et ween fact s d ev el o p ed du ri n g an ex am i n at i o n o f an
em pl o y er’ s p en s i on o r ret i rem en tp l an return 3 an dth e l i n e i t em s o n rel at edi n co m e

3 Su ch as Fo rm 5 5 0 0, An n u al Return / Rep orto f Em p l o y ee Ben efi tPl an , o r o th er fo rm s i n th e 5 5 0 0 s eri es .-4
-

t ax return s . 4 EP Ex am in at i o n Pro ces s Gu i de--Di s crep an cy Ad ju st m en t s , h t tp s : //www.i rs .g o v /ret i rem en t -p l an s / ep -ex am i nat i o n -p ro ces s -g u i de-d i s crep an cy ad ju s t m en t s (l as tup d at ed M ar. 4 , 2 0 2 1 ). Inp erfo rm i ng h i s du t i es as a rev en u e ag en t, M r. W arq u e h adacces s t o m an y t ax l aw res earch res o u rces , i n cl u di n g W es t l aw, th atwo u l d en ab l e h i m t o res earch t ax l aws . Duri n g th e y ears i n i s s u e,
an d fro m atl eas t 2 0 0 9, the W arq u es ’ p ers o n al res i d en ce was i n Nev ad a; th o u g h M r. W arq u e was g en eral l y n o ten t i t l edt o wo rkfro m there. III. Hard s h i p Tran s fer In 2 0 1 4 M r. W arq u e ap p l i edfo r a h ard s h i p tran s fer fro m th e IRS
ex am i n at i o n o ffi ce i n Lag un a Ni g u el t o th e IRS ex am i n at i on o ffi ce i n Las Veg as , Nev ad a. Al th o u g h the req u es twas ap p ro v edo n Ap ri l 1 1 , 2 0 1 4 , h e was n ev er tran s ferred
. Th e req ues t ap p ro v al d i d n o tg u aran ty a n ew jo b p l acem en t o r tran s fer. Th e ap p ro v al was fo r h ard s hi p el i g i b i l i ty . Wh en ap p ro v ed , h ard s h i p el i g i b i l i ty p u t s the i n di v i du al ’ s n am e o n a l i s tfo r co n s i d erat i o n. M r. W arq u e’ s ap p ro v al l et ter s tat ed : Th i s i s t o i n fo rm

y o uthaty o u r h ard s h i p ap pl icat i o n h as b een ap p ro v ed . Yo u r n am e h as b een up d at edi n th e Sp eci al Pro g ram s d at ab as e o n 0 4/ 11 / 2 0 1 4
. Th i s d o es n o tm ean y o u h av e a jo b

4 Su ch as Fo rm 1 0 4 0, U.S. In d i v i du al In co m e Tax Return , o r Fo rm 1 1 2 0 , U.S. Co rp o rat i o n In co m e Tax Retu rn .-5
-

p l acem en to ffer at th i s t im e. Ho wev er, y o uwi l l b e co n s i d eredfo r fu tu re v acan ci es i n y o u r d es i redp o s t o f du ty wi th th e s t atu s o f a h ard sh i p el i g i b l e. Es s en t i al l y

i f a jo b v acan cy

b ecam e av ai l ab l e i n th e IRS ex am in at i o n o ffi ce i n Las Veg as , th e rel ev an t IRS em p l o ym en to ffi ce wo u l dfi rs tch eckth e Sp eci al Pl acem en tPro g ram s Rep ortfo r an y m at ch es . If M r. W arq u e’ s ap pl i cat io n was a
m at ch , th e rel ev an tem

pl o ym en to ffi ce wo u l dreq u es tan d recei v e h is ap p l i cat i o n . Th ere was n o g u aran ty

th at h e wo u l dth en recei ve t h e req u es t ed ch an g e t o h i s p o s t
o f du ty l o cat i o n ; fu rt her act i o n was req u i red
. M r. W arq u e reap pl iedth ro u g h th e s am e p ro ces s i n 2 0 1 5 an d was ag ai n ap p ro v edfo r h ard s h i p el i g i bi l i ty an dp l aced o n th e l is t fo r co n s i d erat i o n . M r. W arq u e al so ap p l iedi n 2 0 1 6 , b u tth atap p l i cat i o n was n o tap p ro v ed . In2 0 1 7 h e
was t em p o rari l y au th o ri zedt o ch an g e h is p o s to f du ty t o Las Veg as fo r a co up l e o f
m o nt h s t o care fo r h i s wi fe an dn ewb orn ch i l d. Ho wev er, M r. W arq u e n ev er recei v eda fu l l -t im e h ard s h i p tran s fer t o Las Veg as . IV. Bu s i n es s Ex p en s es Bo th M r. an dM rs . W arq u e k ep ttracko f M r. W arq u e’ s ex p en s es . Wh en h e
wo u l dtrav el b et ween h i s res id en ce i n Nev ad a an dh i s p os to f du ty i n Lag u n a Ni g uel , M r. W arq u e k ep ttracko f h i s m i l eag e u s i n g h i s p ho n e. He wo ul db eg i n track i n g m i l es wh enh e l efth is p ers o n al res i d en ce i n Nev ad a o n Su n d ay an dth en-6
-

reco rdh i s m i l eag e ag ai n wh en h e ret u rn edFri d ay m o rn in g s . M r. W arq u e wo u l d th en m an u al l y

tran s fer t h e p ho ne reco rd edm il eag e o n t o a s h eeto f n ot eb o o kp ap er. Atth e en do f the y ear h e wo u l ds u m m ari ze t h e m i l eag e fro m

th e h an dwri t t en s h eet
o r s h eet s fo r u se i n p rep ari n g a t ax retu rn fo r t h e y ear. Th e W arq u es al s o co l l ect ed recei p t s fo r g as o l i n e an dcar rep ai rs . Wh en M r. W arq u e wo rk edfro m h i s
res i den ce i n Nev ad a o n week en d s , h e wo u l db u y h i s wo rks up pl i es as p art o f h i s fam i l y ’ s g ro cerys h o p p i n g . Becau s e o f t h e co m bi n ed n atu re o f t he s h o p p in g tri p s , M rs . W arq u e wo u l d es t i m at e t he am o u n t s fo r M r. W arque’ s wo rks up p li es . Fo r
ren tex p en s es , M rs . W arque wo u ldtrackth e am ou n t s th atM r. W arque t o l dh er h e h ad p ai dfo r ren t i n g a ro o m i n Co s t a M es a, Cal i fo rn i a, wh i ch was n ear h i s p o s to f du ty i n Lag u n a Ni g uel
. V. Th e Ret u rn s Th e W arq u es ’ Fo rm

1 04 0 t ax retu rn fo r each y ear i n i s s u e i ncl u d ed Sch edu l e A, It em i zedDedu ct i o n s , o n wh i ch they rep ort edv ari ou s d edu ct io n s i n cl u d i n g , as rel ev an th ere, u nrei m b u rs edem

p l o y ee b us i n es s ex p en s es . In cl u d ed i n that cat eg o ry

were ex pen s es fo r m i l eag e, g as , m eal s an den tert ai n m en t , an d p ers o n al effect s . Th o s e ex p en s es were fu rt h er d el i n eat edo n Fo rm 2 1 0 6-EZ, Un rei m b u rs edEm

p l o y ee Bu s i n es s Ex p en s es .-7
-

M o re s p eci fi cal ly

o n th e Fo rm s 2 1 06 -EZ, fo r 2 0 1 5 the W arques rep o rt ed $ 1 4 ,2 0 5 as a m i l eag e ex p en s e an d$ 9 ,1 7 0 o f b u s i nes s ex p en s es ; fo r 2 0 16 th ey rep o rt ed$ 1 2 ,1 3 2 as a m i l eag e ex p en s e an d$ 13 ,1 9 1 o f b u s i n es s ex p en s es ; an dfo r 2 0 1 7 they d i dn ot rep o rtm i l eag e ex p en s e b utrep o rt ed$ 1 4 ,1 48 o f b u si n es s
ex p en s es . M r. W arq u e wo u ld g i ve M rs . W arq u e s o m e o f t h e d o cu m en tat i o n rel at edt o h i s u n rei m

b u rs edem

p l o y ee b u s i n es s ex pen s es . M rs . W arq u e wo ul ds up p lem en t th atwi th ex p en s e i n fo rm at i o n s h e m ai n t ai n edo n s pread s h eet s s he creat ed . Th e W arq u es u s edTu rb o Tax t o co m p let e t h e ret urn s . M rs . W arq u e wo u l dal l o w th e Tu rb o Tax s o ftware p ro m pt s t o g u i d e h er i n rep o rt i n g ex p en s es as s h e was p rep ari n g each retu rn . M r. W arqu e wo u l dth en s ki m th ro u g h th e co m

p l et ed retu rn s b efo re fi l in g. VI. No t i ce o f Defi ci en cy Aft er an ex am i n at i o n an dan ap p eal t o th e IRS Offi ce o f Ap p eal s , th e IRS i s su eda s t atu t o ry

n o t i ce o f d efi ci en cy

d i s al l o wi ng i t em i zedd edu ct i o n s o f $ 2 3 ,7 9 7, $ 2 5 ,9 9 1 , an d$ 1 4,5 6 2 fo r 2 0 1 5 , 2 0 1 6 , an d2 01 7 , res p ect i v el y . Th es e d i s al lo wan ces co n s i s t ed o f t h e rep o rt edu n rei m b u rs edem

p l o y ee b u si nes s
ex p en s es .-8
- Di s cu ss i o n I. Bu rd en o f Pro o f Gen eral ly , th e Co m

m i s s i o n er’ s d et erm i n at i o n s i n a n o t i ce o f d efi ci en cy are p res u m edco rrect . Ru le 1 4 2 (a) p laces th e b u rd en o f p ro o f o n the t ax p ay er u n l es s
o th erwi s e p ro v i d edb y

s t atu t e o r d et erm in edb y

th e Co u rt . See W el ch v . Hel v eri n g , 2 9 0 U.S. 1 1 1 , 1 15 (1 9 33 ). A t ax p ay er cl ai m i n g a d edu ct i o n o n a Fed eral i nco m e t ax return m u s td em on s trat e t h atth e d edu ct i o n i s al l o wab l e p u rs u an t t o a s tatu t o ry

p ro v i s i o n an dm

u s tfu rther s ub s tan t iat e t h atth e ex p en s e t o wh i ch th e d educt i o n rel at es h as b een p ai do r i n cu rred . Sec. 6 00 1 ; Hrad es ky v . Co m m i s s i o n er, 6 5 T.C. 8 7, 8 9-9 0 (1 9 7 5 ), aff’ d p er cu ri am , 5 4 0 F.2 d8 2 1 (5 th Ci r. 1 9 7 6 ); M en eg u zzo v . Co m m is s i o n er, 4 3 T.C. 8 2 4 , 8 3 1 -8 32 (1 9 65 ); s ec. 1 .6 0 0 1
- 1 (a), In co m e Tax Reg s . Th e b u rd eno f p ro o f s h i ft s t o th e Co m m i ss i on er u nd er cert ai n ci rcu m s t an ces t o the ex t en tth ata t ax p ay er co m es fo rt h wi th cred ib l e ev i den ce wi th res p ectt o a fact ual i s s u e rel ev an tt o as cert ai n i n g th e t ax p ay er’ s l iab i l i ty . Sec. 7 4 9 1 (a)(1 ). Th e W arq u es d o n o tco n t en d , n o r d o es the ev id en ce es t ab l i s h , th atthe b u rd en s h i ft s t o
res p o n d en t u n der s ect i o n 7 4 9 1 (a) as t o an y i s s u e o f fact
.-9
-

II. Un rei m

b urs edEm

p l o y ee Bu s i n es s Ex pen s es As we h av e o b s erv edi n co u n tl es s o p i n i o n s, d edu ct i on s are a m at t er o f l eg i s lat i v e g race, an dthe t ax p ay er b ears th e b urd en o f s ubs t an ti at i n g h i s cl ai m ed d educt i o n s b y

k eep i ng an d p ro du ci n g reco rd s s uffi ci en t t o en ab l e t h e Co m m i s s i o n er t o d et erm i ne t h e co rrect t ax l i ab i l i ty . Sec. 6 0 01 ; INDOPCO, In c. v . Co m m i s s i o n er, 5 0 3 U.S. 7 9 , 8 4 (1 9 9 2 ); s ec. 1 .6 0 0 1-1 (a), (e), In co m e Tax Reg s . As rel ev an th ere, s ect i o n 1 6 2 (a) al l o w s d edu ct i o n s fo r al l o rd i n ary an d
n eces s ary b u s i n es s ex p en ses p ai do r i n cu rreddu ri n g th e t ax ab l e y ear i n carry i n g
o n a t rad e o r b us i n es s . Bo y dv . Co m m i ss i o n er, 1 2 2 T.C. 3 0 5, 3 1 3 (2 0 0 4 ). Th i s i n cl u d es p erfo rm i n g s erv i ces as an em p lo y ee. See Pri m

ut h v . Co m

m i s s i o n er, 5 4 T.C. 3 7 4 , 3 7 7 -3 78 (1 9 7 0). To b e o rd i n ary th e ex pen s e m

u s tb e o f a co m

m on o r freq uen to ccu rren ce i n the t y p e o f b u s i n es s i nv o lv ed . Dep u ty v . duPo nt , 3 0 8 U.S. 4 8 8 , 4 9 5 (1 9 4 0). To b e n eces saryan ex p en s e m u s tb e ap p ro p ri at e an dh el p fu l t o th e t ax p ay er’ s b u si n es s . W el ch v . Hel v eri ng , 2 90 U.S. at1 1 3 . If, as a co n di t i o n o f
em pl o y m en t , an em

p l o y ee i s req u i redt o i n cu r cert ai n ex p en s es , th en th e em p l o y ee i s en t i t l edt o a d edu ct i o n fo r t h o s e ex pen s es u n l es s en t i t l ed t o rei m b u rs em en tfro m h i s o r h er em

p l o y er. See Fo u n tai n v . Co m m is s i o n er, 5 9 T.C. 6 9 6 , 7 08 (1 9 7 3 ); Sp i el b au er v . Co m

m is s i o n er, T.C. M em o . 1 9 98 -8 0 . Anem pl o y ee b us i n es s
ex p en s e i s n o t“ ord in ary

an d n eces s ary ” i f t he em p l o y ee i s en t i t l edt o-1 0
-

rei m b u rs em en tfro m

h is o r h er em

p l o y er b u t fai l s t o s eekrei m b u rs em en t . See Po d em s v . Co m

m i s s i o n er, 2 4 T.C. 2 1 , 2 2 -2 3 (1 9 5 5 ); No z v . Co m m i s si o n er, T.C. M em o. 2 0 1 2 -2 7 2
. Sect i o n 2 6 2 (a), o n th e o th er h an d , p ro v i d es th at p ers on al , l i vi n g, o r fam i l y

ex p en s es are n o td edu ct i b l e u n l es s “ ex p res s l y p ro v i d ed ” i n th e Co d e. W i rtv . Co m

m i s s i o n er, T.C. M em o . 1 98 8 -3 2 9 , 5 5 T.C.M . (CCH) 1 3 6 9 , 1 3 7 1 (1 9 8 8 ). Keep i n g i n m i n dth es e g u i d i n g p ri n ci p l es , we tu rn o u r at t en t i on t o th e d educt i o n s i n d i sp u t e h ere. A. Trav el i n g Ex p en s es Onth ei r 2 0 1 5 an d2 01 6 ret u rn s , as trav el ex p en s es , th e W arq u es rep o rt ed
u n rei m b u rs edem

p l o y ee b us i nes s ex p en s es fo r, am o n g o th er t h i n g s , M r. W arq u e’ s
m i l eag e, car rep ai r an dm ai nt en an ce, m eal s , g as , car i n s p ect i o n co s t s , an dro o m
ren t al . Th e m ai n i s s u e reg ard i ng thes e t rav el -rel at edex p en ses i s wh et h er M r. W arq u e’ s p ri n ci pal p lace o f em p l oym en twas Las Veg as , Nev ad a, o r Lag u n a Ni g uel , Cal i fo rn i a. Th e W arq u es as s ertthatap p ro v al o f M r. W arq u e’ s ap p l i cat i o n fo r h ard s h i p rel o cat i o n l edt o h i s reas o n ab le b el ief t h atthe wo rk p erfo rm edatth e IRS o ffi ce i n Lag u n a Ni gu el was t em p o rary . 5

5 M r. an dM rs . W arq u e m ak e t h is arg u m en td es p i t e t he fact th atth ey rep o rt eds i m i l ar ex p en s es o n p ri o r y ears ’ t ax retu rn s .-1 1
-

Sect io n 1 6 2 (a)(2 ) ex p res s l y p ro v id es th atex p en s es rel at edt o t rav el can b e d educt edi f o rd i n ary an dn eces s ary an di n cu rred wh i l e t h e t ax p ay er i s away fro m

“ h o m e” i n th e p u rs u i to f a t rad e o r b u s i n es s . See Baro n e v . Co m m i s s i o n er, 8 5 T.C. 4 6 2 , 4 6 5 (1 9 8 5 ), aff’ d wi th o u tp ub l is h ed o p i n io n , 8 0 7 F.2 d1 7 7 (9 th Ci r. 1 9 8 6 ). 6 Trav el i n g ex p en s es , i n cl ud i n g am o un t s ex pen d edfo r m eal s an dl o d g i n g
an d th e u s e o f “ l i s t edp ro pert y ” (as d efi n ed i n s ect i o n 2 80 F(d )(4 ) an di n cl u d i n g p as s en g er au t o m o b il es ) m ay b e d edu ct edu n d er s ect i o n 1 6 2 (a)(2 ) i f t h ey are: (1 ) o rd i n ary

an dn eces s ary ; (2 ) i n cu rredwh i l e away fro m h o m e; an d(3 ) i n cu rred i n p u rs u i to f a t rad e o r b u s i n es s . Co m m i s s i o n er v . Fl o wers , 3 2 6 U.S. 4 65 , 4 7 0 (1 9 4 6). Th e p urp os e o f t h e “ away fro m h om e” p ro v i s io n i s t o m i t i g at e t h e b u rd en
o f a t ax p ay er wh o , b ecau s e o f h i s o r h er t rad e o r b u s i n es s , m u s tm ai nt ai n two p l aces o f ab o d e an di n cu r ad d i ti o n al an ddup l i cat e l i v i n g ex p en s es . Kro l l v . Co m m i s s i o n er, 4 9 T.C. 5 57 , 5 6 2 (1 9 6 8 ). Fo r t h e p u rp o s e o f s ect i o n 1 6 2 (a)(2 ),

“ h o m e” i s d efi n edas th e v i ci n i ty o f a t ax p ay er’ s p ri n ci p al p l ace o f em p l oym en t rat h er t h anth e l o cat i o n o f t h e t ax p ay er’ s p ers on al res i d en ce (i .e., th e “ t ax h o m e”

6 W e al s o no t e t h atthe d edu ct i o n s fo r ex p en s es at tri bu t ab l e t o t rav el u n d er s ec. 1 6 2(a), i f o th erwi s e al l owab l e, are s ubject t o s tri ct ru l es o f s ub s t an t iat i o n . See s ec. 2 7 4(d ); San fo rdv . Co m m i s s i o n er, 5 0 T.C. 8 2 3 , 8 2 7 (1 9 6 8 ), aff’ dp er cu ri am , 4 1 2 F.2 d2 0 1 (2 d Ci r. 1 9 69 ); s ec. 1 .2 7 4 -5 T (a), Tem p o raryIn co m e Tax Reg s ., 5 0 Fed
. Reg . 4 6 0 1 4 (No v . 6 , 1 9 85 ). Becau s e we d eci de t h i s i s s u e o n th e b as i s o f M r. W arq u e’ s t ax h om e, t h e s tri cts ub s t an t i at i o n ru l es are n o ts ep arat el y ad dres s ed
.-1 2
-

m i g h tb e i n d i fferen tl o cal e fro m th e res i den ce). M i t ch el l v . Co m m i s s i o n er, 7 4 T.C. 5 7 8 , 5 8 1 (1 9 8 0 ). Ho wev er, wh ere t h e em p l o ym en ti s fo r a t em

po raryrat h er th an i n d efi n i t e o r p erm an en t p eri o d , t ax p ay ers m ay u s e t h ei r p ers o n al res i den ce l o cal e as th ei r t ax h o m e. See Peu ri fo y v . Co m m i s s io ner, 3 5 8 U.S. 5 9, 6 0 (1 9 5 8 ); Kro ll v . Co m

m i s s i o n er, 4 9 T.C. at5 6 2 -5 6 3 . A b u s in es s l o cal e i s co n si d ered t em p o rary i f t h e em p l oym en ti s s u ch th at“ t erm i n at io n wi th in a s ho rtp eri o dco u l d b e fo res een .” Al b ertv . Co m m i s s i o ner, 1 3 T.C. 1 2 9, 1 3 1 (1 9 4 9). Ev en i f i ti s kn o wn th atth e em

p l o ym en twi l l t erm i n at e wi th i n a fi xedt i m e, i t i s n ott em p o rary i f i ti s ex p ect edt o l as tfo r a s ub s t an t i al o r i n d efi n i t e du rat i on . See W irtv . Co m m i s s i o n er, 5 5 T.C.M . (CCH) at 1 3 7 1
. Th e Co u rto f Ap p eal s fo r t h e Ni nt h Ci rcu i t 7 es t ab l i s heda t es tt o d et erm i n e wh et h er a t ax p ay er’ s em

p l o ym en ti s t em

p oraryo r p erm an en t i n Harv ey v . Co m m i s s i o n er, 2 8 3 F.2 d4 9 1 , 4 9 5 (9 th Ci r. 1 9 6 0 ), rev ’ g an drem an d in g 3 2 T.C. 1 3 6 8 (1 9 5 9 ). Th e t es tl o o k s at wh et h er “ th ere i s a reas o nab l e p ro b ab i l i ty kn o wnt o
* * * [t h e t ax p ay er] th ath e m ay b e em p l o y edfo r a l o n g p eri o do f t i m e ath i s n ew

7 As s t at eds upra p . 2 , p u rs u an tt o s ec. 7 46 3 (b ) o u r d eci s i o n i n th i s cas e i s n o trev i ewab l e b y an y

o th er co u rt . Ho wev er, ab s en tth e s m al l cas e d es i g nat i o n an y ap p eal wo ul dl ie i n th e Co u rto f Ap p eal s fo r t h e Ni n th Ci rcu i t . See s ec. 7 4 8 2 (b )(1 )(A), (2 ). Thu s , ev eni n cas es s ub jectt o s ec. 7 4 63 (b ), we g en eral l y ap p ly th e l aw i n a m an n er co n s i s t en twi th the h o l d i n g o f t h e Co u rto f Ap p eal s t o wh i ch an ap p eal o f o ur d eci s i o n wo u l do therwi s e l i e. See Go l s en v . Co m m i s s i o n er, 5 4 T.C. 7 42 , 7 5 7 (1 9 7 0 ), aff’ d , 4 45 F.2 d 9 8 5 (1 0 th Ci r. 1 9 7 1 ).-1 3
-

s t at i o n .” Id . Wh atco ns t i tu t es a “ l o n g p eri o do f t i m e” v ari es wi th t h e ci rcu m s t an ces o f each cas e. Id
. Onth i s reco rd , ap p l y in g ei th er t h e t es to f t hi s Co u rto r t hato f t h e Co u rto f Ap p eal s fo r t h e Ni n th Ci rcu i t, we h o ldth atM r. W arque was n o t“ away fro m h o m e” wi thi n th e m ean i ng o f s ect i on 1 6 2 (a)(2 ). M r. W arq u e t rav el edfro m h i s p ers o n al res id en ce i n Las Veg as t o h i s p l ace o f em p l oym en ti n Lag u n a Ni g u el
. M r. W arq u e b eg an wo rk i ng i n Lag u na Ni g u el i n 2 0 0 9 kno wi n g th ati twas a fu l lt i m e n o n tem

p o raryp o si t i on . Th i s s i tu at i o n d i d n o tch an g e wh en h e ap p l i edfo r t h e h ard s h i p rel ocat i o n . Th e h ard s h i p rel o cat i o n ap p ro v al l et t er cl earl y s t at edth at th ere was n o cert ai n ty th ath i s du ty s t at i o n wo u l db e ch an g edt o Las Veg as . Th e ap p ro v al was o n e o f el i g i b i l i ty . Th e l et t er cl earl y s t at ed th atth ere was n o g u aran t y h e wo u l db e t ran s ferred . Infacth e was n o ttran s ferred . Th ere co u l db e n o
reas on ab l e b el ief t h atth e Lag un a Ni g u el du ty s t at i o n ch an g edt o a t em po raryo ne i n 2 0 1 5 o r earl i er. M r. W arq u e’ s t ax h om e fo r p u rp o s es o f s ect i on 1 6 2 (a)(2 ) was h i s Lag u n a Ni g u el p l ace o f em p l o ym en t . Itwas M r. W arq u e’ s p ers o n al p referen ce t o m ai n t ai n a p ers o nal res i d en ce i n Las Veg as . Co ns equ en t l y , the t rav el i n g
ex p en s es M r. W arq u e i n cu rredfo r m il eag e, ren t , car rep ai r an d m ai n ten an ce, car i n s p ect i on , an dm eal s were n otco v eredb y th e ex cep t io n i n s ect i o n 1 6 2 (a)(2 ) an d
are n o td edu ct i b le. See W i rtv . Co m m i s s io n er, 5 5 T.C.M . (CCH) at 1 37 1 -1 3 7 2
.-1 4
-

In ad d i t i o n , ex pen s es th ata t ax p ay er i ncu rs i n co m m u t i n g b et ween a t ax h o m e an dh i s p l ace o f b u s i n es s / em p l o ym en tare p ers o n al an dn o n d edu ct i b l e. See Co m m i s s i o n er v . Fl o wers , 3 2 6 U.S. at4 7 3-4 7 4 ; Heu er v . Co m m i s s i on er, 3 2 T.C. 9 4 7 , 9 5 1 (1 9 5 9), aff’ dp er cu ri am , 2 8 3 F.2 d 8 6 5 (5 th Ci r. 1 9 60 ); s ecs . 1 .1 6 2 -2 (e), 1 .2 62 -1 (b )(5 ), In co m e Tax Reg s . Here, M r. W arq u e ren t eda ro o m i n Co s t a M es a, Cal i fo rn i a, wh ich i s n ear Lag u n a Ni g u el
. Hi s co m m u ti n g ex pen s es fo r t rav el b et ween h i s ren t edro o m

an dh i s p l ace o f b u s i n es s are l ik ewi s e n o n d edu ct i b l e. B. Oth er Bu s i n es s Ex p en s es To d edu ctem

p l o y ee b u si n es s ex p en s es , a t ax p ay er m u s t n o th av e recei v ed rei m b u rs em en tan dm

u s tn o th av e h adth e ri g h tt o o b t ai n rei m b u rs em en t fro m

h i s
em pl o y er. See Orv i s v . Co m m i s s i o n er, 7 8 8 F.2 d1 40 6 , 1 4 0 8 (9 th Ci r. 1 9 8 6 ), aff’ g T.C. M em o . 1 98 4 -5 3 3 . Th e W arq u es b ear t h e b urd en o f p ro v i n g t h atth ey are n o t
en t i t l edt o rei m

b u rs em en tfro m

M r. W arq u e’ s em

p l oy er fo r s u ch ex p en s es . See Fo u n t ai n v . Co m

m i s si o n er, 5 9 T.C. at7 0 8
. Oth er t h an m i l eag e, t h e W arq u es d i d n o t d el in eat e t h ei r b us i n es s ex p en s es
o n th e Fo rm s 2 1 06 -EZ fi ledwi th th ei r retu rn s. Attri al th ey p ro du ced s pread s h eet s
an d a s am p l in g o f act u al recei p t s . Th e s p read s h eet s s etfo rt h th e fo l l o w i n g cat eg o ri es o f un rei m

bu rs ed em

p l o y ee b u s i n es s ex p en s es : cl o th i n g , dry cl ean i n g , u n i o n du es , o ffi ce s up pl i es , an dp ers o n al effect s. Th e recei p t s were fo r M r.-1 5
-

W arq u e’ s cl o th i n g (i ncl u d i n g a s u i tan d s h o es ), dry cl ean i n g , h ai rcu t s , g ro ceri es , u n i o n du es , an d p ers o n al i t em s s u ch as d eo d o ran t , m o u th was h , an d fl o s s . Th e W arq u es d i dn o tp ro v i d e an y i n fo rm at i o n es t ab l i s h i n g wh et h er M r. W arq u e wo u l d h av e b een en t i t l edt o rei m b us em en tfo r b u s in es s ex p en s es i n cu rred o n b eh al f o f h i s em p lo y er, t h e IRS, n o r d i dth ey p ro v i d e a rei m

b urs em en tp l an . Cl o thi n g ex p en s es are d edu ct i b l e i f t h e cl o th i n g i s o f a t y p e s p eci fi cal l y req u i redas a co n d i t i on o f em p l o ym en t , n o t ad ap t ab l e fo r g en eral u s e as o rd i n ary cl o th i n g , an d n o two rn as o rd i n ary cl o th i n g . Yeo m an s v . Co m m i s s i o n er, 3 0 T.C. 7 5 7 , 7 6 7 (1 9 5 8). A s u i t an ds h o es are cert ai nl y ad ap t ab l e as o rd i narycl o thi n g . Th erefo re, t h e am o u nt s rep ort edfo r cl o th in g , an dth ei r upk eep , were p ers o n al an d
as s u ch are n otd educt i b l e. See s ec. 2 6 2 (a). Si m i l arl y , g ro o m i n g ex p en s es are i n h eren tl y p ers o n al an d are n o td edu ct i b l e
ev en if an em

p l o y er req u i res an em

p l oy ee t o b e wel l g ro o m ed . Hy n es v . Co m m i s s i o n er, 7 4 T.C. 1 26 6 , 1 2 9 2 (1 9 80 ). Co n seq u en t l y , th e W arq u es are n o t
en t i t l edt o a d edu ct i o n fo r h ai rcu t s an dp ers o n al h y g i en e p ro du ct s . Fo r 2 0 1 7 o n l y , th e W arq u es rep o rt edo ffi ce s up p l i es as p art o f th ei r
u n rei m b u rs edem

p l o y ee b us i nes s ex p en s es . M r. W arq u e p u rch as eds up pl i es fo r
u s e wh en h e was wo rk i n g fro m h o m e. He ad m i t t edth atth e IRS wo ul d p ro v i d e h i m wi th o ffi ce s up pl i es fo r h i s jo b . Ho w ev er, h e was wo rk i n g fro m h o m e fo r at-1 6
-

l eas t part o f 2 0 1 7 t o h el p care fo r h i s wi fe an dch i l d . As p rev i o us l y s t at ed , t ax p ay ers b ear t h e b u rd en o f es t ab l i s h i n g en t it l em en t t o a d edu ct i o n . Hrad es ky v . Co m m i s s i o n er, 6 5 T.C. at 8 9 -9 0 ; M en eg u zzo v . Co m m i s s i o n er, 4 3 T.C. at8 3 1
- 8 3 2 ; s ec. 1 .6 0 0 1 -1 (a), In co m e Tax Reg s . Th e W arques d i dn o tp ro vi d e an y d o cu m en t at i o n t o s ub s tan t i at e th e rep o rt edu n rei m b u rs edem

p l o y ee b u si nes s
ex p en s es fo r o ffi ce s up p l i es b ey o n dth e s el f-p rep areds p read sh eet s . No r d i dth ey p ro v id e i n fo rm at i o n ab o u t wh et h er t h es e ex p en s es were rei m b u rs ab l e b y

th e IRS
o r h o wth ey were co n n ect edwi th M r. W arq u e’ s p os i t i o n at th e IRS. Co n s equ en t l y , th ey

d i dn o tm eetth ei r b urd en o f s h o wi n g t h es e ex p en s es were d educt i b l e. III. Co n cl u si o n W e h o ldth atth e W arq u es are n o t en t i t l edt o d eductth ei r rep o rt ed
u n rei m b u rs edem

p l o y ee b us i nes s ex p en s es fo r t hei r 2 0 1 5, 2 0 1 6 , an d2 0 1 7 t ax ab l e y ears . Inreach i n g ou r d eci si o n, we h av e co n s id eredal l arg u m en t s m ad e, an dt o th e ex t en tn o t m en t io n ed ab o v e, we co n cl u d e t h ey are m o ot , i rrel ev an t , o r wi th o u t
m eri t .-1 7
-

To refl ectthe fo reg o i n g , Deci s i o n wi ll b e en t eredfo r
res p o nd en t as t o the d efi ci en ci es an dfo r p et i t i o ners as t o th e accu racy -rel at ed p en al ti es u n d er s ect i o n 6 6 6 2 (a).