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1991 and 498 miles per day in 1992.4 At an average rate of 60
miles per hour, Mr. Black would have had to drive between 7 and 8
hours per day, 7 days per week,5 not including time spent stopped
for gas or meals, or meeting with clients.
At trial, both petitioners testified that Mr. Black “loved
to drive”. Petitioners argue that Mr. Black’s business was just
starting up and client contact was very important. However,
petitioners failed to identify even one instance of any business-
related travel for either year in issue by destination or name of
client. Additionally, the original travel log is now missing and
is not part of the record.
Mr. Black may have traveled for business purposes. However,
we are convinced that the deductions for travel claimed on the
1991 and 1992 joint returns are grossly overstated. We find that
such overstatements are indicative of Mr. Black’s fraudulent
intent to avoid taxes.
Petitioner is an intelligent and well-educated businessman.
We find that he had a basic comprehension of Federal tax matters
and he understood that individuals must report their gross income
and can only claim deductions for amounts actually paid in the
ordinary and necessary course of business, and not for personal
expenditures.
4156,669/365 = 429.23; 181,692/365 = 497.79
5429/60 = 7.15; 498/60 = 8.3
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