Billy J. Neal and Judith A. Neal v. Commissioner of Internal Revenue

The Neals appeal from a Tax Court decision upholding a determination by the Commissioner of Internal Revenue that taxpayer was not entitled to deduct transportation expenses, incurred in commuting by automobile between his personal residence and his place of employment, as business expenses under Section 162(a) of the Internal Revenue Code of 1954. The Tax Court had jurisdiction over this matter under Section 7442 of the Internal Revenue Code of 1954 and jurisdiction is conferred on this court by Section 7482.

Billy J. Neal (taxpayer) was hired on March 14, 1977, by the Bechtel Power Corporation to work on the Palo Verde Nuclear Construction project near Buckeye, Arizona. Work on the project commenced in May 1977. The project was designed to be constructed in three separate units, expected to be completed by 1983, 1984, and 1985, respectively. Taxpayer worked continuously on the project as an ironworker and as a foreman for about twenty-six months, until May 1979, when he was terminated due to absenteeism. While taxpayer worked on the project he maintained his personal residence seventy-two miles away in Phoenix, Arizona. He traveled by automobile to the job site in the morning…