- 9 - the salaries and wages petitioners earned each year. The amounts claimed allegedly represented the costs petitioners incurred in using their personal vehicles in connection with their employment. Some of the expenses also were for what petitioners identified as "Work/Tool Expenses". Petitioners did not maintain any log or other record documenting the dates, times, and places their vehicles were used in connection with their respective employments during the years in question. The deductions cannot be allowed for the reason that, under section 274(d) and the regulations thereunder, vehicle expenses are subject to strict substantiation rules that require "adequate records" through either an account book, diary, statement of expense, or similar record, as well as documentary evidence to establish each element of an expenditure. Sec. 1.274- 5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). No records were presented at trial to substantiate these expenses; consequently, respondent is sustained on the disallowance of the employee business expense deductions.7 7 The Forms W-2, Wage and Tax Statement, that were offered in evidence with petitioners' tax returns indicate that petitioner Steven L. Chambers was an employee of the United States Government. The Court is very skeptical that a Federal employee incurring job-related expenses of the magnitude claimed on petitioners' returns would not have been reimbursed in whole or in part by the employing Federal agency.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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