Zinovy V. Reytblatt and Natalia B. Romalis-Reytblatt - Page 6




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               In certain circumstance the Court may estimate various                 
          expenses.  See Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d              
          Cir. 1930).  Section 274(d), however, imposes strict                        
          substantiation requirements for expenses relating to travel and             
          in this regard supersedes the Cohan doctrine.  See Sanford v.               
          Commissioner, 50 T.C. 823, 827 (1968), affd. 412 F.2d 201 (2d               
          Cir. 1969).  To obtain a deduction for travel, a taxpayer must              
          substantiate “by adequate records or by sufficient evidence                 
          corroborating * * * [his] own statement” the amount of the                  
          expense and the time and place of the travel.  Sec. 274(d).                 
          Petitioner, as noted, presented no evidence to satisfy section              
          274(d).4  Accordingly, as to this issue, we hold for respondent.            
               With respect to the Schedule C loss, petitioner conceded               
          that issue in the stipulation of facts.                                     
               In closing, we observe that to the end petitioner has sought           
          to depose Mr. Evans, an Appeals officer with whom he met in                 
          attempts to settle this matter.  Putting aside the untimeliness             
          and other deficiencies with respect to petitioner’s application,            
          we cannot fathom what information Mr. Evans could have possessed            
          that would have shed any material light on the issues properly              
          before this Court.  The evidence concerning substantiation under            
          section 274(d) is under petitioner’s control.  Furthermore, any             



               4  We also note that there is a problem of hearsay with                
          respect to the expenses of petitioner’s wife.                               





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