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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, using the facility or
property, or receiving the gift. * * *
The expenses petitioner deducted as unreimbursed employee
business expenses consisted of meals and entertainment, travel,
lodging, and telephone expenses. For petitioner to prevail, he
had to satisfy the substantiation requirements of section 274
with respect to all expenses claimed except the telephone
expense. He failed to do so.
Documentation for some but not all of the unreimbursed
employee business expenses claimed was admitted into evidence in
the trial of this case. During cross-examination regarding the
documentation, petitioner admitted that some of the expenses were
included on his 1993 travel expense reports and had been
reimbursed. He also admitted that some of the expenses were
really personal expenses. As to all of the remaining expenses,
petitioner failed to prove (1) the business purpose or nature of
the expenses and (2) the reason, if any, why the expenses, even
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