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F.2d 513 (10th Cir. 1947). This strongly suggests that
petitioner’s diary and stubs (1) are materially false, and (2)
were not substantially contemporaneous in 1987, but were
constructed well after August 1988 when the restaurant first
opened as Frank’s Steaks.
We conclude, and we have found, that petitioner’s diary and
the stubs are not “adequate records” for purposes of section
274(d) and section 1.274-5T(c)(2), Temporary Income Tax Regs.
(2) Corroboration
Substantiation by “sufficient evidence corroborating the
taxpayer’s own statement” requires the cost, time, place, and
date of the expenditure to be corroborated by “direct evidence,”
while business purpose or business relationship may be shown by
“circumstantial evidence.” Sec. 1.274-5T(c)(3)(i), Temporary
Income Tax Regs.
The witnesses who testified about sharing meals with
petitioner were unable to support the specifics of petitioner’s
testimony or diary. None of the witnesses could identify (1) any
particular date on which they had dined with petitioner, (2)
where they had eaten, (3) who else was present during the meal,
or (4) the amount of any bill. Some of the witnesses could not
even recollect ever being at some of the restaurants that,
according to the diary, they had dined at, nor could they
recollect ever having met the people who, according to the diary,
shared a meal with them. Indeed, with the exception of general
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