Carroll R. Furnish - Page 11




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          Sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg.               
          46016 (Nov. 6, 1985).                                                       
               When a taxpayer's records have been destroyed or lost due to           
          circumstances beyond his control, he is generally allowed to                
          substantiate his deductions through secondary evidence.                     
          Malinowski v. Commissioner, 71 T.C. 1120, 1125 (1979); sec.                 
          1.274-5T(c)(5), Temporary Income Tax Regs., 50 Fed. Reg. 46022              
          (Nov. 6, 1985).  A taxpayer in this type of situation may                   
          reconstruct his expenses through other credible evidence.  Watson           
          v. Commissioner, T.C. Memo. 1988-29; sec. 1.274-5T(c)(5),                   
          Temporary Income Tax Regs., supra.  If no other documentation is            
          available, we may, although we are not required to do so, accept            
          credible testimony of a taxpayer to substantiate a deduction.               
          Watson v. Commissioner, supra.                                              
               Petitioner credibly testified as to the nature of the                  
          expenses he incurred in the operation of his truck.  We accept              
          petitioner’s credible testimony as substantiation of his car and            
          truck expenses.  Under the circumstances, petitioner’s                      
          uncontradicted testimony warrants allowance of the entire amounts           
          claimed for these expenses on his tax returns.  See Miller v.               
          Commissioner, supra.  Accordingly, we do not sustain respondent’s           
          determination disallowing these expenses.                                   
          II. Section 6651(a)(1)                                                      
               Respondent determined that petitioner is liable for an                 






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