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requirements of the taxpayer's employer. Sec. 1.162-5(a)(1),
Income Tax Regs.
A taxpayer's general statement that his or her expenses were
incurred in pursuit of a trade or business normally is not
sufficient to establish that the expenses had a reasonably direct
relationship to that trade or business. Ferrer v. Commissioner,
50 T.C. 177, 185 (1968), affd. per curiam 409 F.2d 1359 (2d Cir.
1969). Rather, a taxpayer must maintain records sufficient to
permit verification of income and expenses. Sec. 6001; sec.
1.6001-1, Income Tax Regs. That a taxpayer cannot prove the
exact amount of an otherwise deductible item is not fatal,
because generally, unless precluded by section 274, we may
estimate the amount of such an expense and allow the deduction to
that extent. Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).
The estimate, however, must have some reasonable evidentiary
basis. Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).
A. Commuting Expenses
Respondent determined that petitioners are not entitled to
deduct expenses incurred for approximately 9,300 and 4,800 miles6
driven during 1991 and 1992, respectively, in connection with
Mrs. Whalley's job-related education.
6 The standard mileage allowances for 1991 and 1992 were 27.5
and 28 cents per mile, respectively, for all miles of use for
business purposes. Rev. Proc. 90-59, 1990-2 C.B. 644; Rev. Proc.
91-67, 1991-2 C.B. 887. There is some indication, based on the
documents submitted at trial that petitioners used the 27.5 cents
per mile flat rate for both 1991 and 1992 in determining the
amount of their deduction for business mileage driven.
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