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Commissioner, 91 T.C. 352, 363-364 (1988); sec. 1.162-17(a),
Income Tax Regs.
If a taxpayer establishes that he or she paid or incurred a
deductible business expense but does not establish the amount of
the deduction, we may approximate the amount of the allowable
deduction, bearing heavily against the taxpayer whose
inexactitude is of his or her own making. Cohan v. Commissioner,
39 F.2d 540, 543-544 (2d Cir. 1930). For the Cohan rule to
apply, however, a basis must exist on which this Court can make
an approximation. Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985). Without such a basis, any allowance would amount to
unguided largesse. Williams v. United States, 245 F.2d 559, 560
(5th Cir. 1957).
Certain business expenses may not be estimated because of
the strict substantiation requirements of section 274(d). See
sec. 280F(d)(4)(A); Sanford v. Commissioner, 50 T.C. 823, 827
(1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969). For such
expenses, only certain types of documentary evidence ordinarily
will suffice.
Internet Access Expenses
We now examine those expenses not subject to the strict
substantiation requirements. Petitioners claimed $160 for
Internet access expenses during 2003. We have characterized
Internet expenses as utility expenses. Verma v. Commissioner,
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