- 8 - sufficient corroborative evidence, then it is disallowed. See sec. 274(d). In order to substantiate amounts expended for travel, the taxpayer must prove the: (1) Amount of each expenditure (i.e., lodging, meals, gas, and etc.); (2) time (i.e., dates of departure and return trip and number of days spent on business); (3) place; and (4) business purpose (i.e., the business reason for the travel or the nature of the business benefit to be derived). See sec. 1.274-5T(b)(2)(i) through (iv), Temporary Income Tax Regs., supra. Similarly, in order to substantiate amounts expended for entertainment, the taxpayer must prove the: (1) Amount of each expenditure (except for incidental items such as taxi fares or telephone calls that may be aggregated on a daily basis); (2) time, which means the date of the entertainment; (3) place (i.e., the name, if any, address or location, and designation of the type of entertainment, such as dinner or theater, if it is not apparent from the designation of the place); (4) business purpose (i.e., the business reason for the entertainment or the nature of the business benefit to be derived and the nature of the business discussion or activity); and (5) business relationship (i.e., name, title, occupation, or similar information of the persons entertained). See sec.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NextLast modified: March 27, 2008