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to support a taxpayer’s reconstruction of the elements of
expenditure or use must have “a high degree of probative value to
elevate such statement” to the level of credibility of a
contemporaneous record. Sec. 1.274-5T(c)(1), Temporary Income
Tax Regs., 50 Fed. Reg. 46016-46017 (Nov. 6, 1985).
The Court finds that petitioner has not met the adequate
records requirements of section 274 and is unable to establish
each element of his expenditure or use of the truck. See sec.
1.274-5T(c)(2), Temporary Income Tax Regs., 50 Fed. Reg. 46017
(Nov. 6, 1985).
Petitioner gave no oral or written evidence of the names or
number of his employees for the year or how much he paid each of
them. The Court therefore finds that there is no basis upon
which an estimate may be made of his wage expenses for casual
labor. Without such a basis, an allowance would amount to
unguided largesse. See Williams v. United States, supra.
Self-Employment Tax
From the evidence in the record, the Court concludes that
petitioner is liable for the self-employment tax under section
1401 on his Schedule C earnings.
Failure To File Timely
When asked why his tax return was filed late for 1996,
petitioner forthrightly replied: "The fact of the matter is I
was negligent." Because petitioner has conceded that his tax
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