Group Administration Premium Services, Inc., et al. - Page 16

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          if admitted, exhibit 104 would not prove the deductibility of the           
          additional travel and entertainment expenses.  In addition to               
          petitioners’ burden under section 162(a) of proving that the                
          expenses were ordinary and necessary business expenses, section             
          274(d) imposes a stringent substantiation requirement for                   
          deductions for travel and entertainment expenses.  Under section            
          274(d), no deduction will be allowed for travel and entertainment           
          expenses unless the taxpayer substantiates these expenses by                
          adequate records or by sufficient evidence corroborating the                
          taxpayer’s own statement regarding:  (1) The amount of such                 
          expense or other item; (2) the time and the place of the travel             
          and entertainment; (3) the business purpose of the expense; and             
          (4) the business relationship to the taxpayer of the person                 
          entertained.  Sec. 274(d); sec. 1.274-5, Income Tax Regs.                   
               While exhibit 104 is a fairly comprehensive compilation of             
          airline, rental car, hotel, and entertainment receipts, none of             
          these receipts describes the business purposes of the trips or              
          entertainment expenses.  Petitioner’s testimony is the only                 
          evidence of the business purposes of the trips, and his                     
          uncorroborated testimony of the business purposes of the trips              
          fails to satisfy the substantiation requirements of section                 
          274(d).  Sec. 1.274-5, Income Tax Regs.  We therefore sustain               
          respondent's determination disallowing the travel and                       
          entertainment expenses.                                                     





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