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expense was incurred in at least in the amount to be allowed.4
Norgaard v. Commissioner, 939 F.2d 874, 879 (9th Cir. 1991), affg.
T.C. Memo. 1989-390; Williams v. United States, 245 F.2d 559, 560
(5th Cir. 1957); Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985).
Petitioner unsuccessfully attempted to obtain from his
accountants the business records of Dormer & Louver, as well as all
documents the accountants had used in the preparation of
petitioners’ 1993-95 tax returns. Petitioner requested all
records, receipts, or other documentation which could substantiate
the costs and expenses claimed on the returns. However, Accufast,
the tax return preparer for 1993 and 1994, did not retain clients’
records after 5 years, and J.E. & Assoc., the other purported tax
return preparer, claimed it had not prepared petitioners’ 1995
return and ignored petitioner’s inquiry.
4 Sec. 274 requires a taxpayer to substantiate expenses for
travel, meals and entertainment, and gifts, and with respect to
listed property (as defined in sec. 280F(d)(4) and including
passenger automobiles) by adequate records or by sufficient
evidence corroborating the taxpayer’s own statement establishing
the amount, time, place, and business purpose of the expense. Sec.
274(d); sec. 1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg.
46014 (Nov. 6, 1985). The sec. 274 rules of substantiation
supersede the doctrine of Cohan v. Commissioner, 39 F.2d 540, 543-
544 (2d Cir. 1930). Sanford v. Commissioner, 50 T.C. 823, 827-828
(1968), affd. 412 F.2d 201 (2d Cir. 1969); sec. 1.274-5T(a),
Temporary Income Tax Regs., supra. The expenses and deductions at
issue in this case do not fall within those expenses covered by
sec. 274.
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