Document: 386 U.S. 287 87 S.Ct. 1065 18 L.Ed.2d 53 COMMISSIONER OF INTERNAL REVENUE, Petitioner,v.Howe A. STIDGER et ux. No. 173. Argued Jan. 16, 1967. Decided March 20, Mitchell Rogovin, Washington, D.C., for petitioner. John Reed, New York City, as amicus curiae, in support of judgment, by invitation the Court. Mr. Chief Justice WARREN delivered opinion 1 In this case we are required to determine whether, under 1954 Internal Revenue Code, expenditures meals a military officer stationed at post which is dependents were prohibited from accompanying him deductible 'traveling expenses * (incurred) while away home' within meaning § 162(a)(2)1 or whether instead they nondeductible 'personal, living, family expenses' 262.2 At all pertinent times, respondent3 was captain United States Marine Corps, attached an aviation squadron. Immediately prior October 1957, his permanent duty station Corps base located El Toro, California, and he lived nearby with wife children. On 1, however, respondent squardron transferred Iwakuni, Japan, where be based serving standard 15-month tour Far East. Because personnel that station, respondent's children remained California. 2 Of 14 1/2 months' actual duration Eastern duty, physically Iwakuni 10 months. The remaining time consumed travel short periods various other bases; declared 'travel status' period 49 days, received additional compensation those days on per diem basis. During entire service captain, both served bases abroad family, also tax-free monthly allowances quarters subsistence. 3 1958 income tax return, claimed deduction $650, representing cost rate $65 month months spent base. Commissioner disallowed deduction, ruling expenditure living' expense 262 not 162(a)(2). Commissioner's view 'home' during question rather than California resided; therefore, 'away when incurred expenditure, Tax Court upheld (40 T.C. 896), petitioned review Appeals Ninth Circuit. That court, curiam decision one judge dissenting, reversed rejected definition purposes deduction. 355 F.2d 294. majority ruled word used 162(a)(2) Code must given its usual place residence, business, taxpayer family. And since it reasonable move residence closer 'ordinary necessary' requirement applicable 162 deductions met deductible. To resolve direct conflict between 1948 Fourth Circuit another involving officer, Bercaw v. Revenue, 165 521, granted certiorari. 385 809, 45, 17 51. 4 This then requires us focus upon three conditions before item 162(a) (2). There no but here there 'direct connection carrying trade business employer.' Cf. Flowers, 326 465, 470, 66 250, 252, 90 L.Ed. 203 (1946); Peurifoy 358 59, 79 104, 30 (1958). essence expenditure. answer turns determination circumstances related above, or, instead, 5 From Act 19214 down Congress has provided taxable expenses, including amounts expended lodging, home.' Although defined crucial phrase home,' administrative rulings regulations have been directed toward problem. 1921, general rule established effect meant taxpayer's principal employment coincided residence.5 interpretation prevented day-to-day commuting unusual type expense' statute directed. (1946). Its logic applied host situations. certain refinements added,6 essential position unchanged. 6 While court below,7 together Courts Fifth8 Sixth9 Circuits, always agreed interpretation, Court10 courts appeals considered sustained Commissioner.11 travel-expense made clear 1936 held Members could deduct even though each maintained district had elected. Lindsay 34 B.T.A. 840. did respond amending statutory language generally provide intended synonymous 'residence,' merely carved out exception cover special problems inherent national legislator.12 7 argues fact reviewed re-enacted awareness constitutes legislative endorsement sufficient reason reversing judgment below. Helvering Winmill, 305 79, 59 83 52 (1938). But necessary decide congressional action (or inaction) approval adoption myriad applications since, context taxpayer, firmer foundation. long home determining deductibility expenses. builds terminology employed services categorize assignments tours policy provisions prescribing transportation personnel. For example, directive, effective length terms commencement termination dates 'permanent change(s) station.'13 (Emphasis supplied.) Similarly, eligibility assignment 'change station' (emphasis supplied) serviceman designated duty.' 37 U.S.C. 404(a)(1). Thus, recognizes, do relevant statutes themselves, 'permanence' location civilian life cannot find complete parallel necessarily contemplates relatively frequent changes location. 8 nondeductibility previously challenged 521 (C.A.4th Cir. 1948). There, reserve army who called active assigned Fort Meade Maryland dependents, sought janitorial costs traveling pursuit business. affirmed Court's disallowance stating: 9 'The engaged Army officer. His particular post. If duties travel, would allowance taxable. whenever change became Section 23(a)(1)(A). Thus personal living non-deductible *.' F.2d, 524. Since decision, reiterated Rev.Rul. 55—571, 1955—2 Cum.Bull. 44. until below present case, neither nor disturbed pertained 11 Additional found traditionally system personnel.14 These now range payments quarters15 subsistence16 status.'17 Provision may financial relief assist relocating station.18 station. without him, same continued receive approximately $102.50 month;19 subsistence $42.50 times. Moreover, because moved their part Government's expense; elected exercise option. 12 Underlying recognition poses problems.20 designed such opposed incomplete indirect affords traveler.21 inadequate, if inconsistencies application provision personnel,22 province Commissioner, courts, make appropriate adjustments. Given longstanding judicially approved knowledge Congress, chosen deal specially peculiar life, agree feasible permissible reside there. is, reversed. 13 Reversed. DOUGLAS, whom BLACK FORTAS concur, dissenting. 15 resolution depends expenses.1 term defined. 16 Treasury's many years indeed treated employment. See 471—472, 253, 203. me means qualification should establish near reasonable. Ibid. Here forbidden orders take him. He was, words, barred taking went orders. points difficulty having any fixed It said rigid, great complex facts considered: adequacy housing new post, moving, school facilities, health need care elderly ailing relatives, like. Only provides certainty, said; threaten desire uniformity. equity seldom ingredient laws, inherently discriminatory ways, reflecting perquisites obtained pressure groups,2 increase harshness giving simple words strained meanings—unless course plainly arbitrary choice. chooses maintain removed dictated needs. supra. hand, reasonably hence Such give allowing needs 19 can Iwakuni. motivated '(t)he exigencies conveniences necessities the' respondent. supra, 474, 254. I see how result changed simply member armed services. afforded members indication allowed residence. Respondent pay basic East residing States. help defray increased live 'There shall ordinary paid year including— '(2) (including amount lodging) *' 1954, 26 (1958 ed.) 'Except otherwise expressly chapter, personal, expenses.' 262. joint return filed Captain Mrs. Stidger, respondents here. opinion, 'respondent' 'taxpayer' refer only Stidger. c. 136, 214(a), 42 Stat. 239. O.D. 864, 211 (1921); 1021, 174 (1921). See, e.g., I.T. 1490, I—2 89 (1922); 60 189, 1960—1 60. note 22, infra. addition instant Wright Hartsell, 221 (C.A.9th 1962). Steinhort 335 496 (C.A.5th 1964); Le Blanc, 278 571 1960). Burns Gray, 698 (C.A.6th 1961). Friedman 539 (1961); Carroll 20 382 (1953). closely analogous surrounding employee War Department 1947 Korea minimum year. child A lodging noted employer (1) (2) en route Korea, Todd 655 (1948). O'Toole 243 302 (C.A.2d 1957); Coerver 297 837 (C.A.3d 1962), affirming 36 252 1948); England States, 345 414 (C.A.7th 1965); Cockrell 321 504 (C.A.8th 1963); 82 App.D.C. 63, 160 (1947). First Tenth Circuits apparently taken question. 467. carried over reads: 'For preceding sentence, Member State, district, Territory, possession represents home, excess $3,000.' 162(a). Order 1300.8B, issued July 1958. Record, p. 24. Advisory Commission Service Pay, Career Compensation Uniformed Forces, Appendix 13—18 403. 402. 404. §§ 405—412. 406(h). 403(d) provides: 'A uniformed facility jurisdiction denied if, competent authority, occupying quarters.' 1948, Hook Commission, appointed Secretary Defense study compensation, report recommendations. Forces formed basis 1949, 681, 63 802. subjects allowances, stated (Appendix, 17): theory behind arrange times choice therefore does average citizen manner subsisting himself, so bear wherever stationed. 'Because frequently dig up roots old transplant them Government acknowledged obligation furnish occupancy himself dependents.' 21 through evidenced levels consistent burdens borne servicemen. e.g. id., 35 13—18; H.R.Rep.No. 779, 81st Cong., 1st Sess., 19. 1963, enacted yet measure separated servicemen outside country Alaska. 427(b). Under specified conditions, authorizes $30 monthly. recognized families incur H.R.Rep. 208, 88th 29 Congressional Administrative News, 912. course, underlies taxpayers. 22 naval aboard ship port. 55 571, contended situation directly sea extended time. justifies discrepant treatment arguing like engineer train, bus driver, airplane pilot deduction; taxpayers terminal trips. We convinced respects sea. event, oral argument advised re-examining respect neval officers. part: '(a) general.—There '* assume farmer herd hogs. Each selects young bred. After sow litter, she turned conditioned slaughter. profits sale pigs unbred income. bred once capital gains. They properties producing pigs. equally destined sold eaten unimportant.' Eisenstein, Idelogies Taxation (1961).

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