Here is some information about what constitutes a "foreign convention" and what to do about "travel expense deductions. " You should, of course, consult your own tax agent as to applying this information to your own status. (Quotes are from the U.S. Master Tax Guide, 1984.)
1026A (p. 370) "FOREIGN CONVENTIONS. No deduction is allowed for expenses allocable to a "foreign convention" unless the taxpayer establishes that the meeting is directly related to the active conduct of his trade or business or to an income- producing activity and that, after taking certain factors into account, it is "as reasonable" for the meeting to be held outside the North American area as within it."
(In the opinion of the Society's legal counsel, it appears that the meeting in Graz would be found to be "reasonable" with regard to a location outside North America.)
Editor's note: IDRS has membership in 33 countries and has held a convention in Edinburgh (1980).
1025 (p. 369) "LIMITING TRAVEL EXPENSE DEDUCTIONS. Traveling expenses (including meals and lodging) of a taxpayer who travels outside of the United States away from home must be allocated between the portion of the trip which is for business and the portion which is for pleasure. Where the trip is for not more than one week or where the time spent for personal reasons on the trip is less than 25% of the total time away from home, no allocation is required. Also, no allocation is required where the traveling expenses are incurred for a trip within the United States (Code Sec. 274(c)(3). Reg. 5 1.274-4). If, however, expenses were incurred on a purely personal side trip, they would be nondeductible even though all the travel was within the U. S. For special rules governing expenses of attending foreign conventions, seminars, and other similar meetings, see [paragraph] 1026A.
Where the trip is longer than a week (seven consecutive days counting the day of return but not the day of departure) and 25 % or more of the time away from home is spent for personal reasons, then a deduction for travel expenses will be denied to the extent that they are not allocable to the trade or business of the taxpayer (or his management of income-producing property).
No allocation is required where (1) the individual traveling had no substantial control over the arranging of the business trip, or (2) a personal vacation was not a major consideration in making the trip. An employee traveling under a reimbursement or expense account allowance arrangement is not considered as having substantial control over the arranging of a business trip unless he is a managing executive (an employee who can, without being vetoed, decide on whether and when to make the trip) or is a 10%-or-more owner of his employer (Reg 51.274-4(f)(5)).
Allocation must be made on the basis of the time spent on business and on personal affairs.
Where no allocation is required, the Commissioner's primary-purpose test is applied. If a taxpayer takes a trip and while at his destination engages in both business and personal activities, the traveling expenses are deductible only if the trip is related primarily to his trade or business and if the expenses would be incurred even though personal activity was not engaged in. If the trip is primarily personal in nature, the traveling expenses are not deductible even though he engages in some business activities while at his destination. However business expenses incurred while at his destination are deductible even though his traveling expenses are not (Reg. 51.162-2(b))."
Again, be sure to check with your own tax consultant prior to departure.