3
taxpayer bears the burden of proving that those determinations
are erroneous. Rule 142(a); Welch v. Helvering, 290 U.S. 111,
115 (1933). Moreover, deductions are a matter of legislative
grace, and the taxpayer bears the burden of proving that he or
she is entitled to any deduction claimed. New Colonial Ice Co.
v. Helvering, 292 U.S. 435, 440 (1934). This includes the burden
of substantiation. Hradesky v. Commissioner, 65 T.C. 87, 90
(1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). All
taxpayers are required to keep sufficient records to enable
respondent to determine their correct tax liability. Sec. 6001.
If the record provides sufficient evidence that a taxpayer
has incurred a deductible expense, but the taxpayer is unable to
adequately substantiate the amount of the deduction to which he
or she is otherwise entitled, the Court may, under certain
circumstances, estimate the amount of such expense and allow the
deduction to that extent. Cohan v. Commissioner, 39 F.2d 540,
543-544 (2d Cir. 1930). However, in order to estimate the amount
of an expense, we must have some basis upon which an estimate may
be made. Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).
Without such a basis, any allowance would amount to unguided
largesse. Williams v. United States, 245 F.2d 559, 560 (5th Cir.
1957).
Section 162(a) generally allows a deduction for all ordinary
and necessary expenses paid or incurred during the taxable year
in carrying on any trade or business. The regulations
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