Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 70-85

1970-1 C.B. 214

IRS Headnote

Amounts paid to State policemen as reimbursements or allowance for cost of meals while on regular duty and while not in a travel status are subject to withholding of income tax.

Full Text

Rev. Rul. 70-85

Advice has been requested whether withholding of income tax is required with respect to amounts paid to members of the state police as reimbursement or allowance for the cost of meals while on daily patrol duty or on other regular duty assignments and while not in a travel status.

Section 3402 of the Internal Revenue Code of 1954 imposes the requirement of withholding Federal income tax upon every employer making payment of "wages", as defined in section 3401(a) of the Code.

Section 31.3401(a)-1 of the Employment Tax Regulations provides, in part, that the term "wages" means all remuneration for services performed by an employee for his employer, unless specifically excepted. Section 31.3401(a)-1(b)(9) of the regulations provides that the value of any meals or lodging furnished to an employee by his employer is not subject to withholding if the value of the meals or lodging is excludable from the gross income of the employee.

Cash allowances or reimbursements to state police who are not "traveling away from home", and hence are not considered by the Internal Revenue Service to be in a travel status, for meals are compensation for services and includible in gross income under section 61 of the Code. See Ralph A. Wilson v. United States, 412 F. 2d 694 (1969), Ct. D. 1930, page 27, in which the United States Court of Appeals for the First Circuit held that reimbursements to a state policeman for the cost of meals while on duty were includible in gross income. Taxpayer did not seek certiorari in that case.

Consistent with that holding, it is held that amounts paid to members of the state police as reimbursement or allowance for the cost of meals while on daily patrol or on other regular duty assignments and while not in a travel status are subject to withholding of income tax under section 3402 of the Code.