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that each recording of an element of expenditure is made at or
near the time of the expenditure. Sec. 1.274-5T(c)(2)(ii),
Temporary Income Tax Regs. If the taxpayer lacks "adequate
records", then the taxpayer is to provide a written or oral
statement by the taxpayer containing sufficient information in
detail as to each element set forth in section 274(d), as well as
sufficient other corroborative evidence. Sec. 1.274-5T(c)(3)(i),
Temporary Income Tax Regs.
Petitioner’s diary paints a picture of an indefatigable
worker (the diary shows that he had business meals on 304 days,
even though his tax return showed that he worked only 250 days
during 1987) who was, if anything, overly cautious on his tax
return (his diary showed the meals cost him $65,777.39, but he
deducted only $62,500). Supra tables 3 and 2. The bill stubs
present an ostensibly plausible backup, in a bewildering variety
of styles, sizes, and colors.
However, neither the diary nor the stubs show (1) the
business purpose of any of the claimed business meals or (2) the
business relationship to petitioner of any of the people with
whom he dined. In addition, substantially all the other
information in the record about business meals contradicts the
information that is presented in the diary and stubs. Mercer
testified that he, not petitioner, paid for their dinners.
Wright testified that she had many dinners with petitioner during
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