Meal Deduction for Police Officers

[eapat]

I prepare returns for many police officersand received calls from two clients about deducting meals this year. Thisquestion comes up every couple of years and my answer has been "no"because this is a personal expense and not a "necessary and ordinary businessexpense" (unless they are out of town for training, etc.). Now there is apreparer in town going around telling police officers that, since they aresubject to being called off their meals, the cost of the meals are deductible.I did some research and the only case I could find regarding this was ChristyV. U.S.. I do not believe this case says that police can deduct meals simplybecause they are "on duty" while eating. In Christy, the officerswere allowed the deduction because they were ordered to eat in publicrestaurants and did not have the option of eating at home or bringing mealsfrom home, which is not the case for the officers in our area. I was wonderingwhat all of you think. This case was from 1988. Does anyone know of a morerecent case or if Christy was ever reviewed by a higher court.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>

Thanks.

[swamp]

I don't know anything about the case, but it sounds like the tax preparer is telling people what they want to hear so they can get business.  Unethical and stupid. 

[Deleted]

You'll find a good discussion about deducting police officers' meals on the Tax Almanac forum.

www.taxalmanac.org/index.php/Discussion:Police_Officers_-_Meals

[TheOtherMe]

Jan 31, 2013 9:22:00 GMT -5 swamp said:

I don't know anything about the case, but it sounds like the tax preparer is telling people what they want to hear so they can get business.  Unethical and stupid. 

  Many taxpayers will shop around until they find a preparer who will do what they want done on their tax returns.

[taxref]

This is very similar to a meal deduction for firemen.  As with for the police, its only been allowed under very limited circumstances. 

Still, there always seems to be some preparer who will break those rules.  The really frustrating part is that it will get around the firehouse that someone took the deduction and didn't get audited.  Then all the firemen think the dishonest preparer is a tax genius, and that you don't know what you are talking about.  They will all leave you to go to the crooked preparer.

 

[eapat]

Jan 31, 2013 22:48:43 GMT -5 taxref said:

This is very similar to a meal deduction for firemen.  As with for the police, its only been allowed under very limited circumstances. 

Still, there always seems to be some preparer who will break those rules.  The really frustrating part is that it will get around the firehouse that someone took the deduction and didn't get audited.  Then all the firemen think the dishonest preparer is a tax genius, and that you don't know what you are talking about.  They will all leave you to go to the crooked preparer.

 

I'm sure I'll lose some clients over this, but then again I can probably get them back if they need representation at an audit. 

Is there any way to report this preparer to the IRS and if will the IRS actually do something about it?

[rangerj]

If I recall this case correctly it was in the 8th circuit and would only be good as a precident in that circuit. IIR the IRS did not acqiuess to the case conclusion, that is the deduction. If the personal 1/2 of a business meal is not deductible then it is unrealistic to think that a policemans or firemans personal meals would be deductible, other than in some rare circumstances, or when in a travel status. Any tax preparer should make the "disclosure" of this controversial tax position if they put such a deduction on the return. If you are going to put it on the return have the guts to disclose it. The disclosure could save the client some penalties AND could also save the preparer from penalties. 
Forgive the spelling, but I no longer have a secretary. What happened to the spell checker?

[mwcpa]

"Is there any way to report this preparer to the IRS and if will the IRS actually do something about it?"

The IRS does have a whistle-blower process.  www.irs.gov/uac/Whistleblower-Office-At-a-Glance
www.irs.gov/uac/Whistleblower-Informant-Award

[TheOtherMe]

The case involved a state trooper as opposed to a police officer or fireman.