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1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov.
6, 1985). Section 274 provides that no deduction shall be
allowed for, among other things, traveling expenses,
entertainment expenses, meal expenses, gifts, and expenses with
respect to listed property (as defined in section 280F(d)(4) and
including passenger automobiles, computer equipment, and cellular
telephones) “unless the taxpayer substantiates by adequate
records or by sufficient evidence corroborating the taxpayer’s
own statement”: (1) The amount of the expenditure or use; (2)
the time and place of the expenditure or use, or date and
description of the gift; (3) the business purpose of the
expenditure or use; and (4) in the case of entertainment or
gifts, the business relationship to the taxpayer of the
recipients or persons entertained. Sec. 274(d).
In seeking to establish petitioner’s entitlement to deduct
the business expenses disallowed by respondent, petitioner’s
counsel at trial introduced two exhibits and then pointed out
that petitioner’s returns were signed under penalty of perjury.
As to the exhibits, they merely represent the contents of
administrative files received by Mr. Bentley in response to FOIA
requests and are bereft of any materials that would adequately
substantiate the claimed deductions. Although the exhibits do
show that certain information with respect to the expenses was
given to respondent, this information falls far short of meeting
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