Nulsen v. Commissioner

1984 T.C. Memo. 307, 48 T.C.M. 297, 1984 Tax Ct. Memo LEXIS 364
CourtUnited States Tax Court
DecidedJune 19, 1984
DocketDocket No. 25781-82.
StatusUnpublished
Cited by1 cases

This text of 1984 T.C. Memo. 307 (Nulsen v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nulsen v. Commissioner, 1984 T.C. Memo. 307, 48 T.C.M. 297, 1984 Tax Ct. Memo LEXIS 364 (tax 1984).

Opinion

DAVID W. NULSEN AND BEVERLY J. NULSEN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Nulsen v. Commissioner
Docket No. 25781-82.
United States Tax Court
T.C. Memo 1984-307; 1984 Tax Ct. Memo LEXIS 364; 48 T.C.M. (CCH) 297; T.C.M. (RIA) 84307;
June 19, 1984.
David W. Nulsen, for the petitioners.
Douglas W. Hinds, for the respondent.

KORNER

MEMORANDUM FINDINGS OF FACT AND OPINION

KORNER, Judge:*365 Respondent determined deficiencies in petitioners' income tax in the amount of $61 for the calendar year 1979, and $1,387 for the calendar year 1980. After concessions, the sole issue for our decision is whether petitioner David W. Nulsen's employment at the Callaway Nuclear Power Plant construction site (hereinafter "Callaway") was temporary or of indefinite duration. If we find that such employment was temporary, petitioners may deduct the claimed cost of daily transportation in these two years between their home and the Callaway job site 1 under section 162. 2

FINDINGS OF FACT

Some of the facts have been*366 stipulated, and such facts, together with attached exhibits, are incorporated herein by this reference. At the time of the filing of the petition in this case, petitioners, husband and wife, were residents of Eolia, Missouri. Their joint Federal income tax returns for the years 1979 and 1980 were filed on the calendar year and cash basis. During the years here in issue, petitioners resided in Pleasant Hill, Illinois.

Union Electric Company of St. Louis, Missouri, is an electric utility company which, in the years before us, was constructing the Callaway Nuclear Power Plant near Fulton, Missouri. Daniel International Corporation (hereinafter "Daniel") was the general contractor for the job at Callaway. Delcon Corporation, a subsidiary of Daniel, was also employed on the Callaway job.

Construction of Callaway began in late 1975 and, as originally conceived, the project was to consist of two separate and independent nuclear power generating units, Unit 1 and Unit 2. During the years here in issue, Union Electric Company estimated the completion date of Unit 1 to be October 1982; in 1979 it estimated the completion date of Unit 2 to be April 1987, but revised this estimate of*367 completion to April 1988 during 1980. Union Electric canceled Unit 2 in October 1981, but this had no effect on the construction of Unit 1, which continued. The estimated completion dates for the project were publicly announced and were given considerable publicity in the press.

Callaway was a "union job," and the employment of construction workers was the subject of collective bargaining between the relevant trade unions and Daniel. With respect to the employment of electricians on the Callaway job, the collective bargaining agreement between Daniel and the International Brotherhood of Electrical Workers (hereinafter "IBEW") provided that all electricians needed on the Callaway job would be hired through Local 257 of IBEW, located at Jefferson City, Missouri. After determining what its needs for electricians were, Daniel notified the IBEW Local, which supplied the necessary manpower from rosters of job applicants maintained at the IBEW Local office.

With respect to hiring practices, prospective electrician-employees were placed in one of four categories and were hired in the following order:

A. Book 1 employees were local electricians who belonged to IBEW Local 257.

*368 B. Book 2 employees were journeymen linemen who came from other IBEW Locals elsewhere in the United States.

C. Book 3 employees were union members who were ground hands, linemen, or one of various other classifications.

D. Book 4 employees were nonunion electricians with appropriate experience who would be hired if no union electrician was available.

Once employed by Daniel at Callaway, an electrician could be discharged only for cause, through a reduction in force, or by voluntarily quitting. If a reduction in force was determined by Daniel to be necessary, Book 4 employees would be laid off first; there were no considerations of seniority. The master employment agreement specifically excluded the payment of living allowance, travel pay, or subsistence pay to construction workers covered by the agreement.

From November 20, 1979, through January 6, 1981, the number of electricians employed by Daniel at Callaway varied somewhat, but generally the trend was upward. On a weekly basis during this period the fewest number of electricians employed was 288, and the highest number was 577. Throughout the period 1979 through 1982, nonunion and well as union electricians were*369 employed, indicating the inability of IBEW to satisfy Daniel's requirements entirely from union labor.

Petitioner David W. Nulsen (hereinafter "petitioner") a nonunion electrician with prior experience, was employed at Callaway from November 26, 1979, to April 9, 1982, with one 22-day period of unemployment in 1980, when petitioner was laid off in a reduction in force due to a strike at Callaway by two other craft unions. The principal area at Callaway in which petitioner worked was the turbine building, as to which Union Electric and Daniel had jointly estimated a completion date of late 1982. Neither at the time of his employment nor at any other time was petitioner told by his employer or by the union that his employment was for any definite or fixed period of time.

Because of the large amount of electrical work required at a nuclear power generating station such as Callaway, and because electrical work would continue until the final completion of the job, there were reasonable prospects for long-term employment of electricians at Callaway in 1979 and 1980. The electricians' work at Callaway was not seasonal in nature.

During the time of his employment at Callaway, petitioner*370 lived at Pleasant Hill, Illinois, and commuted to and from the job at Callaway by automobile, a distance of 102 miles each way, and was not reimbursed for his expenses in this regard.

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Bluebook (online)
1984 T.C. Memo. 307, 48 T.C.M. 297, 1984 Tax Ct. Memo LEXIS 364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nulsen-v-commissioner-tax-1984.