B-38666, JANUARY 4, 1944, 23 COMP. GEN. 484

B-38666: Jan 4, 1944

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RECEIPTS - TRAVELING EXPENSES - REIMBURSEMENT FOR FEDERAL TAX ON TRANSPORTATION OF PERSONS IN VIEW OF THE FACT THAT RECEIPTS ARE NOT REQUIRED BY PARAGRAPH 81 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS FOR RAILROAD AND OTHER TRANSPORTATION FARES (EXCEPT FOR PAYMENTS IN CONNECTION WITH TRAVEL ON EXTRA-FARE TRAINS. IS NOT REQUIRED TO OBTAIN A RECEIPT FOR THE PAYMENT OF THE ADDITIONAL AMOUNT REPRESENTING THE TAX IN ORDER TO SECURE REIMBURSEMENT THEREFOR. - THE AMOUNT OF WHICH IS COMPUTED ON THE AMOUNT CHARGED FOR SUCH ACCOMMODATIONS. 23 COMP. 1944: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 11. IS ENCLOSED. ISSUANCE OF A TRANSPORTATION REQUEST WAS NOT REQUIRED ( PAR. 20 S.G.T.R.). TO OBTAIN ALL OFFICIAL TRANSPORTATION WHERE THE AMOUNT INVOLVED IS ONE DOLLAR OR MORE * IT IS UNDERSTOOD THAT TRANSPORTATION REQUESTS WERE NOT AVAILABLE TO THE TRAVELER FOR OBTAINING RESERVATIONS.

B-38666, JANUARY 4, 1944, 23 COMP. GEN. 484

RECEIPTS - TRAVELING EXPENSES - REIMBURSEMENT FOR FEDERAL TAX ON TRANSPORTATION OF PERSONS IN VIEW OF THE FACT THAT RECEIPTS ARE NOT REQUIRED BY PARAGRAPH 81 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS FOR RAILROAD AND OTHER TRANSPORTATION FARES (EXCEPT FOR PAYMENTS IN CONNECTION WITH TRAVEL ON EXTRA-FARE TRAINS, OR SLEEPING CAR, PARLOR CAR OR STATEROOM ACCOMMODATIONS), AN EMPLOYEE TRAVELING ON OFFICIAL BUSINESS WHO PROCURES TRANSPORTATION--- OTHER THAN PULLMAN, ETC., ACCOMMODATIONS--- BY PAYMENT OF A CASH FARE OF $1 OR MORE, PLUS THE APPLICABLE TAX IMPOSED BY THE REVENUE ACT OF 1942, IS NOT REQUIRED TO OBTAIN A RECEIPT FOR THE PAYMENT OF THE ADDITIONAL AMOUNT REPRESENTING THE TAX IN ORDER TO SECURE REIMBURSEMENT THEREFOR. AN EMPLOYEE TRAVELING ON OFFICIAL BUSINESS WHO PROCURES PULLMAN ACCOMMODATIONS BY CASH PAYMENT MAY NOT BE REIMBURSED THE AMOUNT OF THE TAX IMPOSED ON THE TRANSPORTATION OF PERSONS BY THE REVENUE ACT OF 1942 IN THE ABSENCE OF A RECEIPT SHOWING PAYMENT FOR SUCH ACCOMMODATIONS, AS REQUIRED BY PARAGRAPH 81 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS; BUT THE RECEIPT NEED NOT CONTAIN A NOTATION CONCERNING THE TAX--- THE AMOUNT OF WHICH IS COMPUTED ON THE AMOUNT CHARGED FOR SUCH ACCOMMODATIONS. 23 COMP. GEN. 188, AMPLIFIED.

COMPTROLLER GENERAL WARREN TO THOMAS SMART, DEPARTMENT OF AGRICULTURE, JANUARY 4, 1944:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 11, 1943 (7-FG), AS FOLLOWS:

THE ATTACHED VOUCHER REPRESENTS RECLAIM OF AN AMOUNT SUSPENDED FROM DAN INGRAHAM'S ORIGINAL JULY 16-19, 1943, ACCOUNT, PAID SEPTEMBER 20, 1943, BY G. F. ALLEN, SYMBOL NO. 104-2350 ON D.O. VOUCHER 4 83112 AND COVERS FEDERAL TAX PAID ON TICKETS OBTAINED WITH CASH FOR TRAVEL FROM SHERIDAN, WYOMING TO WASHINGTON, D.C. AND RETURN TO SHERIDAN. A COPY OF TRAVEL ORDER NO. 6-WD DATED JULY 3, 1943, IS ENCLOSED.

YOUR DECISION B-36378 DATED SEPTEMBER 13, 1943, HAD BEEN NOTED, BUT IT APPEARS THAT IT CANNOT BE USED AS A BASIS FOR DETERMINING THE LEGALITY OF PAYMENT OF THE ATTACHED CLAIM INASMUCH AS THIS DECISION PERTAINS TO A CLAIM FOR TAX PAID ON A FARE WHICH DID NOT EXCEED ONE DOLLAR AND FOR WHICH, ACCORDINGLY, ISSUANCE OF A TRANSPORTATION REQUEST WAS NOT REQUIRED ( PAR. 20 S.G.T.R.).

PARAGRAPH 20, S.G.T.R. READS IN PART AS FOLLOWS:

" TRANSPORTATION REQUESTS SHOULD BE USED, WHEN PRACTICABLE, TO OBTAIN ALL OFFICIAL TRANSPORTATION WHERE THE AMOUNT INVOLVED IS ONE DOLLAR OR MORE *

IT IS UNDERSTOOD THAT TRANSPORTATION REQUESTS WERE NOT AVAILABLE TO THE TRAVELER FOR OBTAINING RESERVATIONS.

MR. INGRAHAM STATES THAT STANDARD FORMS 731, REVISED, TAX EXEMPTION CERTIFICATES, WERE NOT AVAILABLE TO HIM AT THE TIME TRANSPORTATION WAS PROCURED, AND IT WAS, THEREFORE, NECESSARY FOR HIM TO PAY THE TAX ON EACH TICKET PURCHASED. THE CERTIFICATES OF EXEMPTION REFERRED TO ON THE TRAVELER'S ORIGINAL VOUCHER ARE ATTACHED, BUT DO NOT APPEAR TO AFFECT THE CLAIM, SINCE THEY WERE ISSUED SUBSEQUENT TO PAYMENT IN CASH ON A TAX- INCLUDED BASIS AND WERE NOT SURRENDERED TO THE CARRIERS AT THE TIME TICKETS WERE PURCHASED. IT ALSO APPEARS DOUBTFUL WHETHER THE TRAVELER WOULD BE ABLE TO OBTAIN REIMBURSEMENT FROM THE BUREAU OF INTERNAL REVENUE SINCE HE FAILED TO OBTAIN SEPARATE RECEIPTS SHOWING THE AMOUNT OF TAX PAID. THE RECEIPTS FOR PULLMAN FARES SHOW THE AMOUNT OF TAX INCLUDED IN THE TOTAL, BUT THESE RECEIPTS WERE SUBMITTED IN SUPPORT OF HIS ORIGINAL CLAIM FOR REIMBURSEMENT AS REQUIRED BY PAR. 80 (N) S.G.T.R.

YOUR DECISION IS REQUESTED AS TO WHETHER THE AMOUNT OF TAX PAID MAY BE CONSIDERED AS A PART OF THE TRANSPORTATION EXPENSE ACTUALLY AND NECESSARILY INCURRED, EVEN THOUGH THE FARES ON WHICH TAX WAS PAID EXCEEDED ONE DOLLAR, AND THE ATTACHED VOUCHER CERTIFIED FOR PAYMENT. IT IS UNDERSTOOD THE AMOUNT OF 9 CENTS (TAX ON PULLMAN SEAT, TERRE HAUTE, INDIANA, TO ST. LOUIS, MISSOURI) MAY BE CERTIFIED IN ACCORDANCE WITH DECISION B-36378.

IT IS WELL SETTLED THAT WHEN THE TRAVEL OF GOVERNMENT EMPLOYEES ON OFFICIAL BUSINESS IS PROPERLY AUTHORIZED OR APPROVED THEY ARE ENTITLED TO BE MADE WHOLE IN ACCORDANCE WITH THE PROVISIONS OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS AND THE APPLICABLE DECISIONS OF THIS OFFICE FOR THE EXPENSES NECESSARILY INCURRED BY THEM IN CONNECTION WITH SUCH TRAVEL. ALSO, IT IS APPARENT FROM AN EXAMINATION OF THE PROVISIONS OF SECTION 3469 OF THE INTERNAL REVENUE CODE ENTITLED " TAX ON TRANSPORTATION OF PERSONS, ETC., " AS ENACTED BY SECTION 554 OF THE REVENUE ACT OF 1941, 55 STAT. 721, AND AMENDED BY SECTION 609 OF THE REVENUE ACT OF 1942, 56 STAT. 977 (26 U.S.C. 3469) AND THE COMPLEMENTARY REGULATIONS OF THE BUREAU OF INTERNAL REVENUE (SECTIONS 130.61 AND 130.62, REGULATIONS 42, 1942 EDITION, 7 F.R. 2566) THAT--- EXCEPT IN THE CASE OF TRAVEL OF THE TYPES SPECIFICALLY EXCLUDED BY THE LAW FROM THE SCOPE OF ITS TERMS AND WHICH ARE OF NO IMPORTANCE IN THE CONSIDERATION OF THE INSTANT QUESTION--- THE TAX IMPOSED BY SAID STATUTE AND HERE INVOLVED IS REQUIRED TO BE PAID BY A GOVERNMENT EMPLOYEE TRAVELING ON OFFICIAL BUSINESS UNLESS THE TRANSPORTATION OR SEATING OR SLEEPING ACCOMMODATIONS IN A PARTICULAR CASE ARE OBTAINED ON THE BASIS OF A GOVERNMENT TRANSPORTATION REQUEST OR THE EMPLOYEE FURNISHES THE CARRIER WITH AN APPROPRIATE EXEMPTION CERTIFICATE.

OF COURSE, AS POINTED OUT BY YOU, THE PROVISIONS OF PARAGRAPH 20 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS WHICH WERE INVOLVED IN THE DECISION OF SEPTEMBER 13, 1943, B-36378 (23 COMP. GEN. 188), TO YOU, STIPULATE FOR THE USE OF GOVERNMENT TRANSPORTATION REQUESTS WHEN PRACTICABLE IN OBTAINING OFFICIAL TRANSPORTATION WHERE THE AMOUNT INVOLVED IS $1 OR MORE. BUT IT IS CLEAR THAT THOSE PROVISIONS CONTEMPLATE THAT USE COULD NOT BE MADE OF SUCH REQUESTS IN ALL CASES AND IT APPEARS THAT THE CLAIMANT STATES THAT NEITHER TRANSPORTATION REQUESTS NOR EXEMPTION CERTIFICATES WERE AVAILABLE AT THE TIME THE SEVERAL TICKETS HERE INVOLVED WERE PURCHASED. IN FACT IT IS DIFFICULT TO PERCEIVE ANY REASON WHY A GOVERNMENT EMPLOYEE TRAVELING ON OFFICIAL BUSINESS WOULD PAY FOR THE TICKETS AND APPLICABLE TAX THEREON IN CASH, WITH THE ATTENDANT DEPRIVATION FOR A TIME OF THE AMOUNT THUS EXPENDED, IF SUCH REQUESTS OR CERTIFICATES WERE AVAILABLE AT THE TIME OF THE PAYMENTS.

MOREOVER, IT IS TO BE NOTED THAT PARAGRAPH 81 OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS PROVIDES THAT RECEIPTS WILL NOT BE REQUIRED FOR RAILROAD AND OTHER TRANSPORTATION FARES EXCEPT THOSE PAID IN CONNECTION WITH TRAVEL ON EXTRA-FARE TRAINS OR FOR LIVERY OR SPECIAL CONVEYANCES, OR SLEEPING CAR, PARLOR CAR OR STATEROOM ACCOMMODATION. OBVIOUSLY, THE UNDERLYING REASON FOR THE RULE IS THAT THE AMOUNT REQUIRED TO BE PAID FOR RAILROAD TRANSPORTATION IN A PARTICULAR CASE READILY CAN BE VERIFIED DUE TO THE FACT THAT THE CHARGE THEREFOR IS REQUIRED TO BE MADE IN ACCORDANCE WITH ESTABLISHED TARIFF RATES. AND, SINCE THE TAX HERE INVOLVED IS COMPUTED ON THE AMOUNT CHARGED BY A CARRIER FOR ITS SERVICES, THERE IS NO MORE NECESSITY TO REQUIRE A RECEIPT FOR THE PAYMENT OF THE ADDITIONAL AMOUNT REPRESENTING THE TAX THAN TO REQUIRE A RECEIPT FOR THE PAYMENT OF THE AMOUNT REPRESENTING THE CHARGE FOR THE TRANSPORTATION. HENCE, EVEN IF THE CLAIMANT HAD NOT OBTAINED A RECEIPT SHOWING THE PAYMENT FOR THE RAILROAD TICKETS HERE INVOLVED, HE WOULD BE ENTITLED TO REIMBURSEMENT FOR THE AMOUNT PAID ON ACCOUNT OF THE APPLICABLE TAX AS WELL AS THE AMOUNT PAID FOR TH SERVICES RENDERED BY THE CARRIER.

FURTHERMORE, WHILE NEITHER THIS DECISION NOR THAT RENDERED IN 23 COMP. GEN. 188, SUPRA, PROPERLY MAY BE REGARDED AS AUTHORIZING THE REIMBURSEMENT OF THE APPLICABLE TAX ON THE AMOUNT PAID FOR PULLMAN ACCOMMODATIONS IN THE ABSENCE OF A RECEIPT SHOWING THE PAYMENT FOR SUCH ACCOMMODATIONS, IT APPEARS THAT RECEIPTS FOR ALL OF THE PULLMAN TICKETS AND FARES HERE INVOLVED HERETOFORE WERE SUBMITTED BY THE CLAIMANT AND NOW ARE CONTAINED IN THE RECORDS OF THIS OFFICE; AND SINCE THE TAX IS COMPUTED ON THE AMOUNT CHARGED BY THE PULLMAN COMPANY FOR THE ACCOMMODATIONS FURNISHED BY IT AND, THE THEREFORE, READILY CAN BE VERIFIED, IT IS OF NO CONSEQUENCE THAT THE TICKETS OR RECEIPTS DO NOT CONTAIN ANY NOTATION CONCERNING THE TAX.

IN VIEW OF THE FOREGOING IT MUST BE HELD THAT THE CLAIMANT IS ENTITLED TO BE REIMBURSED FOR THE AMOUNT PAID BY HIM ON ACCOUNT OF THE APPLICABLE TAX ON THE RAILROAD TICKET AND PULLMAN TICKETS AND FARES HERE INVOLVED. CF. 24 COMP. DEC. 277.

ACCORDINGLY, YOU ARE ADVISED THAT CERTIFICATION OF THE INSTANT VOUCHER FOR PAYMENT IS AUTHORIZED, IF CORRECT IN OTHER RESPECTS.