Frank Franklin - Page 6

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               At trial, petitioner presented no documentary evidence to              
          support his claim for deductions in excess of the amounts allowed           
          by respondent.  Petitioner argued he had records to substantiate            
          amounts that would exceed those allowed by respondent; however,             
          his records were "scattered" in several places, and, with                   
          sufficient time, he could produce such records that would                   
          establish his entitlement to additional deductions.  The Court              
          notes that trial of this case was continued once because of                 
          petitioner's incarceration; however, he had been released from              
          incarceration approximately 3 months prior to trial of this case.           
          The Court is not convinced that petitioner did not have                     
          sufficient time to prepare his case.  Moreover, as noted earlier,           
          petitioner's wife presented their business records to respondent            
          in the audit process, and, based on the documentation she                   
          presented, respondent allowed the expenses shown above.  There              
          are circumstances, however, where the Court is allowed to                   
          estimate the amount of an allowable deduction under what has been           
          referred to as the Cohan rule.  Cohan v. Commissioner, 39 F.2d              
          540 (2d Cir. 1930).  To apply that rule, the Court must find that           
          the taxpayer is entitled to a deduction but is unable to                    
          establish the amount of the deduction.  On this record,                     
          petitioner failed to present any evidence that would satisfy the            
          Court that the expenses he incurred were in excess of the amounts           
          allowed by respondent.  Moreover, travel, meals, and                        

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