Frank Murphy

“ The railroad gained nothing from this arrangement except the personal satisfaction of the taxpayer.
Travel expenses in pursuit of business within the meaning of § 23 (a) (1) (A) could arise only when the railroad's business forced the taxpayer to travel and to live temporarily at some place other than Mobile, thereby advancing the interests of the railroad. Business trips are to be identified in relation to business demands and the traveler's business headquarters. The exigencies of business rather than the personal conveniences and necessities of the traveler must be the motivating factors. ”

“ Congress allowed the deduction for 'traveling expenses (including the entire amount expended for meals and lodging) while away from home in the pursuit of a trade or business.' Treasury Regulations 103, § 19.23 (a) -1, are to the same effect, with the word 'solely' added after 'home.' Section 19.23 (a) -2 also provides: 'Commuters' fares are not considered as business expenses and are not deductible.' By this decision, the latter regulation is allowed, in effect, to swallow up the deduction for many situations where the regulation has no fit application. ”

“ The court went on, however, to give the further reason for it: 'The situation * * * is, in principle, no different from that in which a taxpayer's place of employment is in one city and for reasons satisfactory to himself he resides in another.' It seems questionable whether, in so ruling, the Tax Court has not confused the taxpayer's principal place of employment with his employer's. For on the facts Jackson rather than Mobile would seem more appropriately to be found his business headquarters. ”

“ In pertinent part, this interpretation states that 'Traveling expenses, as ordinarily understood, include railroad fares and meals and lodging. If the trip is undertaken for other than business purposes, the railroad fares are personal expenses and the meals and lodging are living expenses. If the trip is solely on business, the reasonable and necessary traveling expenses, including railroad fares, meals, and lodging, are business expenses. ”

“ Three conditions must thus be satisfied before a traveling expense deduction may be made under § 23 (a) (1) (A) :
(1) The expense must be a reasonable and necessary traveling expense, as that term is generally understood. ”

“ If the line may be extended somewhat to cover doubtful cases, it need not be lengthened to infinity or to cover cases as far removed from the prevailing connotation of commuter as this one. Including it pushes 'commuting' too far, even for these times of rapid transit. [9]
Administrative construction should have some bounds. ”

“ The arm of the taxgatherer reaches far. In my judgment it should not go the length of this case. Congress has revised § 23 once to overcome niggardly construction. [13] It should not have to do so again.
Notes
↑ 26 U.S.C. § 23 (a) (1) (A) , as amended, 56 Stat. 819, 26 U.S.C.A. Int.Rev.Code, § 23 (a) (1) (A) .↑ No claim for deduction was made by the taxpayer for the amounts spent in traveling from Mobile to Jackson. He also took trips during the taxable years to Washington, New York, New Orleans, Baton Rouge, Memphis and Jackson (Tenn.) ”