- 12 - expenses for the receipts as noted above. It is well settled, however, that we are not required to accept a taxpayer’s self- serving testimony in the absence of corroborating evidence. See Niedringhaus v. Commissioner, 99 T.C. 202, 212 (1992). Respondent is sustained on this issue. 2. Meals and Entertainment Petitioner deducted meals and entertainment expenses in 1991, 1992, and 1993, respectively, of $8,964, $6,677, and $7,252. Respondent allowed $1,000 for each respective year. The record reflects that petitioner deducted the costs of personal meals she had with her fianc� under the guise of “management meetings”. Petitioner testified that she had barbecues or cookouts for suppliers, vendors, and employees. She also cooked meals at home and served them to employees at the work site. Petitioner had receipts reflecting a birthday dinner for her fianc� where one other employee may have attended; thus, according to petitioner, it qualified as a business-related meal. She had multiple receipts for purchases made at local grocery stores and fast food restaurants when she was “out of the area”. Entertainment included baseball tickets to Brewers baseball games for employees, theater tickets, and tickets to the Milwaukee Zoo for her Japanese acquaintances. However, similar to the meals expenses, petitioner has failed to follow the strict substantiation rules of section 274(d).Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011