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Section 274(d) imposes additional stringent substantiation
requirements for certain kinds of business expenses, such as
travel, meal, and entertainment expenses. The substantiation
requirements of section 274(d) supersede the rule of Cohan v.
Commissioner, supra. See Sanford v. Commissioner, 50 T.C. 823,
828 (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969); Kim v.
Commissioner, T.C. Memo. 1999-261, affd. without published
opinion 215 F.3d 1319 (4th Cir. 2000); sec. 1.274-5T(a),
Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
Under section 274(d), a taxpayer must substantiate the amount,
time, place, and business purpose of the expenditures with
adequate records or sufficient evidence corroborating his or her
own statement. See sec. 1.274-5T(b) and (c), Temporary Income
Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985). If a taxpayer is
unable to fulfill the requirements of section 274(d), then he or
she is not entitled to the deduction.
Petitioners do not address the travel, meal, and
entertainment expense issues in their briefs. The parties,
however, stipulated facts relating to the travel expenses. In
addition, the travel, meal, and entertainment expense issues are
specifically identified in the stipulation of agreed adjustments
as disputed adjustments. Under those circumstances, we decline
to treat petitioners’ failure to address the issue as a
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