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274 and the regulations issued thereunder. Sec. 1.274-5(j)(2),
Income Tax Regs.
At trial, Dr. Rinker testified that she used her car to
travel to various business appointments and business-related
events in 1999. Dr. Rinker testified that she documented her
business travel mileage in her appointment book, which also
contained the names of her patients. However, Dr. Rinker did not
think it prudent to offer her 1999 appointment book as evidence
because she was concerned that doing so might violate her duty of
confidentiality towards her patients. Instead, petitioners
presented a computer report that Dr. Rinker prepared in
connection with the examination of the return which purported to
summarize the contents of her 1999 appointment book. That
document purported to show that Dr. Rinker traveled 3,740 miles
in connection with her medical practice.
Petitioners have not satisfied the “adequate records”
standard. Petitioners have not presented documentary evidence
such as receipts, paid bills, or other direct evidence of the
required elements. Petitioners have not presented a log book or
other similar record made at or near the time of the expenditures
at issue. Nor may the Court excuse petitioners’ failure to
produce Dr. Rinker’s appointment book because of Dr. Rinker’s
concern for her clients’ confidentiality. Section 1.274-
5T(c)(2)(ii)(D), Temporary Income Tax Regs., 50 Fed. Reg. 46019
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