b'Transportationexpensesingoingbetweenthetaxpayersresidence andhisplaceofwork,eventhoughthatplaceofworkmaybetemporary, arenon-deductiblecommutingexpenses.Ifthetaxpayerwhoi ncurssuch dailytransportationexpensesisreimbursedforsuchexpensesbyhis employer,suchreimbursementpaymentsareincludibl einhisgrossincome andare"wages"forpurposesofFICA,FUTAa ndincometaxwithholding. Thisrulingreversesa1953RevenueRulingwhichheldt hat(1)dai ly transportationexpensesincurredbyconstructionworkers,ingoingbetween ametropolitanarea(inwhichtheyliveandordinarilyworkatvarious temporaryjobs)andatemporaryworklocationoutsidesucharea,are deductiblebusinessexpenses;and(2)allowancespaidbyanemployeras reimbursementforsuchexpensesarenot"wages"forFederalemp loyment taxpurposesincludingincometaxwithholding. AsoriginallyannouncedbytheIRS,thenewrulingwastohavebeen effectiveJanuary1,1977.However,agreathueandcryarosef r omt he buildingtradesunionsandconstructionemployersconcerningtheruling withtheresultthattheIRShaspostponedtheeffectivedateoft he rulingtoApril1,1977.Thepurposeofthepostponementistoallow furtherstudyoftherulingbyallconcerned. Again,wewilladviseyouofdevelopments. BLISTERINGOVERURETHANEFOAMINSULATION Includedamongthebusinessprogramsoflast year\'sconventi onheld attheBroadmoorinColoradoSpringswasaprogramentitled"WhatisYour 1 Blister 1Pressure?".EdMirra,Owens-CorningFiberglasCorporation,was apanelistandpresentedresearchfindingsofhiscompanyastothereasons fortheblisteringproblem.Enclosedwiththisissueisthewrite-upof theresearchstudybyOwens-Corningonthissubject. CONSTRUCTIONINDUSTRYBARGAININGIN1977 TheU.S.DepartmentofLaborhasrecentlyreleasedareportwhich indicatesthatapproximately55%ofthenations4,800buildingconstructionagreementswillbeupfornegotiationthisyear.Bargaini ngactivity willbeconsiderablyheavierincertainareasofthecountry,asforexample thefourMidwesternstatesofIowa,Kansas,MissouriandNebraska- 70%of the379buildingconstructionagreementsinthesefourstateswillbeup forre-negotiationthisyear. Thereportpointsoutthatsettlementsnegotiatedduring1976showed moderationoverthelevelofsettlementsnegotiatedin1975.Thetwo factorscitedtoexplainthemoderationinsettlementlevelswere(1)the relativescarcityofworkandthecorrespondinghighratesofunemployment and(2)thereductionintherateofinflationduringtheyear. Thereportsuggeststhatshouldinflationcontinuetoabatethis yearandshouldtherebeonlymoderategrowthinthelevelofconstruction activityduring1977,bargainingsettlementsduring1977shouldtendto patternthemselvesafterthe1976settlementlevels.However,ifthelevel'