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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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