5
section 274(d), which prohibits the estimation of expenses for
travel or deductions with respect to certain listed property.
Sec. 274(d). Listed property includes automobiles. Sec.
280F(d)(4).
Section 274(d) requires substantiation of these expenses
either "by adequate records or by sufficient evidence
corroborating the taxpayer's own statement." Sec. 274(d). The
records must show the amount, date, and business purpose of each
expense or business use. Id.; sec. 1.274-5T(b)(6), Temporary
Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985). The
regulations provide that other evidence may be offered in the
form of sampling. Taxpayers may use adequate records maintained
for "a portion of the taxable year" to substantiate business use
for the entire year if they "demonstrate by other evidence that
the periods for which an adequate record is maintained are
representative of the use for the taxable year". Sec. 1.274-
5T(c)(3)(ii)(A), Temporary Income Tax Regs., 50 Fed. Reg. 46021
(Nov. 6, 1985).
Petitioner's daily calendar does not meet the requirement of
adequate records to substantiate petitioners' claimed deduction
for vehicle expense. While it contains dates and client names,
it fails to indicate mileage or business purpose for any of the
entries. In the alternative, petitioners contend that 82 percent
represents a sampling of mileage from a prior year and is
sufficient evidence, arguing that the regulations do not mandate
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