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records in addition to the foregoing example. That particular
example, the Court notes, did not involve records that were lost.
The Court concludes, on this record, that, for the period
during 1992 as to which petitioner's records were not stolen,
such records fail to satisfy the substantiation requirements of
section 274(d). In addition, there is no evidence that his
record keeping was more complete or adequate for the period
before the theft. In A & F Management Corp. v. Commissioner,
T.C. Memo. 1984-585, this Court stated:
This exception to the general substantiation requirements is
available where the taxpayer once had adequate records which
were destroyed by a casualty beyond the taxpayer's control,
and the exception permits the taxpayer to substantiate a
deduction by reasonable reconstruction of his expenditures.
* * * None of the documents submitted into evidence met all
of the elements of section 274(d) nor did * * * [the
taxpayer's] testimony indicate that any of the materials
that were destroyed contained this information.
Consequently, we will not permit petitioners to attempt to
reconstruct A & F's records without satisfying each element
of section 274(d). * * *
In Bacon v. Commissioner, T.C. Memo. 1989-90, this Court found
that a taxpayer failed to make an adequate reconstruction of
destroyed records where such records did not initially contain
sufficient information to satisfy the substantiation requirements
of section 274(d). Counsel for petitioner at trial agreed that
the log maintained by petitioner required by the FAA would not
have included all the information necessary to satisfy the
requirements of section 274(d). Petitioner admittedly did not
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