- 12 - 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 notPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011