Union Employee

[Karen Lee]

Client lives 90 miles from worksite. For years has worked at the same job. Union Welder. Spends 4 nights at job location furnished by employer. Uses personal vehicle daily for job performance.

Client has taken F2106 expenses for vehicle miles (OTJ) and also 50% of food/meals.

My confusion comes in with the "tax home" rules and the food. I don't understand why a vehicle isn't provided by the "union" employer for job performance or that the "union" employer isn't compelled to provide additional $ for use of personal vehicle. If client has a truck mounted welder that is used for work performance then "union" employer is more than likely compensating my client for use of his personal vehicle and therefore wouldn't be allowed to take mileage deduction.

The nature of his business means he travels and travel expenses are allowable as deductions via F2106.

Had the same job for years ... maybe he should move closer to work

The whole food thing is such a stretch that I wouldn't touch it.

This guy has always taken these deductions and even went through an audit and the IRS allowed, according to the client.

What would you do?

Karen

[GeneInAlabama]

Just because an auditor allowed it doesn't make it deductible. If he has been working at that job site for years, then that is his tax home. No mileage from home to work site or meals. He can deduct miles driven at work minus whatever reimbursement he receives if any. If he were to be sent from work to his home town to do a job, then that mileage would be deductible.

[jainen]

>>This guy has always taken these deductions<<

Why does he want a new tax preparer?

[Karen Lee]

Did I say he was a new client?

Did I say he was my client?

Did I say he wanted a new tax preparer?

Could this be hypothetical?

Karen

[jainen]

>>Could this be hypothetical?<<

It could certainly be hypothetical. My response is the same. The taxpayer has taken a tax position, but the question is now outside that. The reason the question has come out is an integral part of the answer. Is he in trouble, has he reconsidered his comfort level, is this just a screen for some other issue?

[Karen Lee]

IRS sting?

Phishing from the competition?

Darn lucky he has gotten away with this for so long?

Karen

[Karen Lee]

Thank you Gene.

[Karen Lee]

OK, I'll come clean.

Not my client. Was having a conversation with tax preparer and we disagreed. I said that his tax home was where he made his money. No food reimb since it was his tax home. Mileage for his personal vehicle being used on the job for a UNION job without compensation is very hard to believe (see GeneInAlabama's response).

Karen