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records or by other sufficient evidence corroborating the claimed
expenses is required. Sec. 274(d); sec. 1.274-5T(a)(1),
Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
To meet the adequate records requirements of section 274(d), a
taxpayer “shall maintain an account book, diary, log, statement
of expense, trip sheets, or similar record * * * and documentary
evidence * * * which, in combination, are sufficient to establish
each element of an expenditure”. Sec. 1.274-5T(c)(2)(i),
Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985).
These substantiation requirements are designed to encourage
taxpayers to maintain records, together with documentary evidence
substantiating each element of the expense sought to be deducted.
Sec. 1.274-5T(c)(1), Temporary Income Tax Regs., 50 Fed. Reg.
46016 (Nov. 6, 1985).
Petitioner’s records with respect to his car and truck
expenses do not satisfy the requirements of section 274(d) and
the regulations cited. Petitioner claimed that he kept adequate
books and records but that they were stolen from his car.
Petitioner also claimed that Pillow Express maintained records of
his mileage, but he provided no substantiation from the company.
When asked about the seemingly inflated amount of car and
truck expenses claimed on his 2001 Federal income tax return,
petitioner stated: “I was just going to guess in my head, at the
time I was doing the taxes. * * * I was just guessing because,
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