Robert A. White - Page 11
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“adequate records” requirement, a taxpayer is to maintain an
account book, diary, statement of expenses, or similar record and
documentary evidence (such as receipts, paid bills, or similar
evidence) which, when combined, establish each element of the
expense that section 274(d) requires substantiated. Sec.
1.274-5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017
(Nov. 6, 1985). Section 274(d) supersedes the general rule of
Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930), and prohibits
the Court from estimating the taxpayer’s expenses with respect to
expenses subject to the strict substantiation requirement.
Sanford v. Commissioner, 50 T.C. 823, 827 (1968), affd. per
curiam 412 F.2d 201 (2d Cir. 1969).
We now consider whether petitioner is entitled to some or
all of the claimed miscellaneous itemized deductions.
Using the standard mileage rate, petitioner claimed a
deduction in the amount of $7,196 for vehicle expenses. At
trial, petitioner testified that because his tax preparer told
him that trips to work outside his normal commute were
deductible, he has been claiming deductions for driving to
overtime shifts since he started working for the Government in
1997. For 2003, he provided his return preparer with the total
number of miles he drove and an estimate of how many miles were
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Last modified: March 27, 2008