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U.S. 79, 84 (1992); Deputy v. Du Pont, 308 U.S. 488, 493 (1940);
New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934); see
also Rule 142(a). The taxpayer has the burden of substantiating
any deduction. Hradesky v. Commissioner, 65 T.C. 87, 89-90
(1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976); see also
Rule 142(a).
At trial, petitioner introduced into evidence a one-page
handwritten “Check Record for Y2K”, listing a series of purported
deductions for charitable contributions, health care costs, State
and local taxes, and bad debts. At trial, petitioner went
through the list, briefly explaining each item. However,
petitioner did not present underlying checks, bank statements,
receipts, statements from third parties, or other documentation
to support the alleged expenses.
Petitioner has failed to substantiate any of his purported
deductible expenses. Therefore, we find that petitioner has not
met his burden of proving that he is entitled to deductions for
the claimed expenses. However, petitioner argues that under
Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930), the Court
should approximate his allowable deductions.
Under the Cohan rule, if a claimed expense is deductible,
but the taxpayer is unable to fully substantiate the amount, the
Court is permitted to make an approximation of an allowable
amount. Id. at 543-544. However, the taxpayer must provide at
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