- 11 -
entertainment,17 unless the taxpayer maintained records
sufficient to establish (1) the amount of each expense, (2) the
time and place of the activity, (3) the business purpose of the
activity, and (4) the business relationship of the person
entertained to the taxpayer.
Where the taxpayer establishes that the failure to produce
adequate records is due to the loss of such records through
circumstances beyond the taxpayer's control, such as destruction
by fire, flood, earthquake, or other casualty, the taxpayer shall
have the right to substantiate a deduction by reasonable
reconstruction of his expenditures. See sec. 1.274-5(c)(5),
Income Tax Regs. The loss of records in connection with a move
is not a casualty beyond the taxpayer's control. See Gizzi v.
Commissioner, 65 T.C. 342, 345-346 (1975); see also Olivares v.
Commissioner, T.C. Memo. 1983-649.
Even if the Court were to view the loss of petitioner's
records as a casualty, petitioner has failed to fulfill the
additional requirement of reasonably reconstructing records. In
an effort to reconstruct his records, petitioner provided copies
of several checks payable to Diners Club, Citibank, MBNA,
American Express, and one check payable to Claire Bixby. Most,
17See sec. 274(d)(2).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011