Danvis S. and Sheryl S. Smith - Page 9

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          sufficient to establish the amounts of the items reported on his            
          Federal income tax return.  Sec. 6001; sec. 1.6001-1(a), (e),               
          Income Tax Regs.  In the event that a taxpayer establishes that a           
          deductible expense has been paid but is unable to substantiate              
          the precise amount, we generally may estimate the amount of the             
          deductible expense bearing heavily against the taxpayer whose               
          inexactitude in substantiating the amount of the expense is of              
          his own making.  Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d            
          Cir. 1930).  We cannot estimate a deductible expense, however,              
          unless the taxpayer presents evidence sufficient to provide some            
          basis upon which an estimate may be made.  Vanicek v.                       
          Commissioner, 85 T.C. 731, 743 (1985).                                      
               Furthermore, section 274(d) supersedes the Cohan doctrine              
          and prohibits estimating certain expenses.  Sanford v.                      
          Commissioner, 50 T.C. 823, 827 (1968), affd. 412 F.2d 201 (2d               
          Cir. 1969).  That section provides that, unless the taxpayer                
          complies with certain strict substantiation rules, no deduction             
          is allowable (1) for traveling expenses, (2) for entertainment              
          expenses, (3) for expenses for gifts, or (4) with respect to                
          listed property.  Listed property includes passenger automobiles            
          and other property used as a means of transportation.  Sec.                 
          280F(d)(4).  To meet the strict substantiation requirements, the            
          taxpayer must substantiate the amount, time, place, and business            

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