Charley Long, a truck driver, works for a seafood company in Mobile, Alabama. Charley helps to deliver fresh seafood to customers from Mobile with the company’s truck. Charley leaves Mobile every weekday at 4:00pm and arrives his last stop at 12:00 midnight. It’s up to Charley whether to drive straight back or spend a night along the road as Charley’s company doesn’t reimburse any his lodging and food expense. Charley sometimes sleeps in his cab in which is equipped with sleeping facilities, having one meal on his way. Occasionally, Charley stays in motels during which he will eat two meals. The IRS disallowed all his expenses generated in his trips, as IRS believes that his expenses are personal expenses.
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The Supreme Court has acknowledged this rule as achieving "not only ease and certainty of application but also substantial fairness". But in U.S. vs. Correll, 389 U.S. 299 (1967), the Court ruled unfavorably for the taxpayer in a situation where a traveling salesman pulled his car over to the side of the road and slept for several hours during trips. In Charley’s case, he cannot deduct the expense or the meal expenses that he incurred when he slept in this cab.
Soon, the Treasury Department issued Rev. Rul. 75-168, 1974 C.B. 58, addressed trips of less than 24 hours. According to the ruling, travel expenses may be deductible for trips of less than 24 hours if it was reasonable for the taxpayer to require sleep or rest. So if Charley can show that the nature of his job is such that it was reasonable for him to take sleep or rest on his trips in order to meet the demands of his job, he can deduct expenses related to business trip and meals. In this case, Charley used