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Hi and welcome to Just Answer! How can I avoid the “Indefinite Employee” rule and maintain my “Temporary Employee” status which it really is?Unfortunately - our interpretation of "temporary" sometimes contradicts with the IRS meaning as it related to job assignment.
While the contact might have end date - and based on that we tend to treat such contract as temporary - in situation as you described - when the assignment is longer than a year - the IRS classified it as not temporary - and as a result - deduction of travel expenses is not allowed.
How do big consulting firms get around this issue?
Please see for reference IRS publication 463 - http://www.irs.gov/pub/irs-pdf/p463.pdfIf your assignment or job away from your main place of work is temporary, your tax home does not change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than one year.