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how much more should be allowed. Cohan v. Commissioner, 39 F.2d
540, 543-544 (2d Cir. 1930).
However, section 274(d)6 provides that a deduction is not
allowable under section 162 for meals and entertainment expenses,
as well as certain other types of expenses, unless the taxpayer
substantiates certain matters by “adequate records” or by
“sufficient evidence” corroborating the taxpayer's own statement.
Where section 274(d) applies, it overrules the “Cohan rule”.
6
Sec. 274(d) provides, in relevant part, as follows:
SEC. 274. DISALLOWANCE OF CERTAIN ENTERTAINMENT, ETC.,
EXPENSES.
* * * * * * *
(d) Substantiation Required.--No deduction or credit
shall be allowed--
* * * * * * *
(2) for any item with respect to an activity
which is of a type generally considered to constitute
entertainment, amusement, or recreation, or with
respect to a facility used in connection with such an
activity,
* * * * * * *
unless the taxpayer substantiates by adequate records or by
sufficient evidence corroborating the taxpayer's own
statement (A) the amount of such expense or other item, (B)
the time and place of the travel, entertainment, amusement,
recreation, or use of the facility or property, or the date
and description of the gift, (C) the business purpose of the
expense or other item, and (D) the business relationship to
the taxpayer of persons entertained, * * *
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