Sanford v. CIR, 389
| Decision Date | 24 June 1969 |
| Docket Number | No. 389,Docket 32905.,389 |
| Parties | William F. SANFORD, Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Appellee. |
| Court | U.S. Court of Appeals — Second Circuit |
Gabriel T. Pap, New York City, for appellant.
Issie L. Jenkins, Lee A. Jackson, Robert N. Anderson, Attys., Dept. of Justice; Johnnie M. Walters, Asst. Atty. Gen., Washington, D. C., for appellee.
Before WATERMAN, MOORE and FRIENDLY, Circuit Judges.
Certiorari Denied October 13, 1969. See 90 S.Ct. 104.
Taxpayer, an "outside salesman" for RKO, deducted on his federal income tax return for the year 1963 items of non-reimbursed entertainment expense totaling $5,667.17. The Commissioner disallowed the deduction taken for any of these alleged entertainment expenditures if in excess of $25.00, and allowed the alleged non-reimbursed entertainment expenses that were less than $25.00. The latter figure amounted to $682.86. The former figure totaled $4,984.31, and the dispute here relates to the disallowance of the $4,984.31. The Commissioner disallowed these deductions taken for expenses in excess of $25.00 because, as required by Treasury Regulation 1.274-5(c) (2) (iii), the taxpayer was unable to produce any restaurant receipts or other documentary evidence to supplement notations made in code on his desk calendar.
The taxpayer petitioned the United States Tax Court for a redetermination of the tax deficiency resulting from these disallowed deductions. The Tax Court affirmed the Commissioner. Appellant now seeks a review of the decision of the Tax Court. We affirm the Tax Court.
The taxpayer's only substantial claim is that the above Regulation is invalid because it directly contradicts § 274(d) of the Internal Revenue Code, 26 U.S.C. § 274. That section begins with the statement: "No deduction shall be allowed unless the taxpayer substantiates by adequate records or by sufficient evidence corroborating his own statement * * *." It is the taxpayer's contention that the two methods of substantiation outlined in the Code are distinct and unambiguous, and that his desk calendar notes completely satisfied the "adequate records" method of substantiation, a method which the taxpayer argues requires no corroboration of taxpayer's own personal records.
Taxpayer's contention is without merit. Treasury regulations are to be upheld unless unreasonable and plainly inconsistent with the statute under which they are promulgated. Commissioner of Internal Revenue v. South Texas Lumber Co.,...
To continue reading
Request your trial
-
B. Forman Company v. CIR
...of Internal Revenue v. South Texas Lumber Co., 333 U.S. 496, 501, 68 S.Ct. 695, 698, 92 L.Ed. 831 (1948); Sanford v. Commissioner of Internal Revenue, 412 F.2d 201, 202 (2d Cir.), cert. denied, 396 U.S. 841, 90 S.Ct. 104, 24 L.Ed.2d 92 Organization The terms "organization," "trade," "busine......
-
Rogers v. Comm'r, T.C. Memo. 2018-53
...Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985); see Sanford v. Commissioner, 50 T.C. 823, 827 (1968), aff'd per curiam, 412 F.2d 201 (2d Cir. 1969). When the strict substantiation rules apply, the taxpayer must substantiate by adequate records or sufficient evidence corrobora......
-
Hynes v. Comm'r of Internal Revenue
...expenditures not thus substantiated will be disallowed in full. Sanford v. Commissioner, 50 T.C. 823, 828 (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969), cert. denied 396 U.S. 841 (1969). Section 1.274-5(c)(2), Income Tax Regs., describes “adequate records” as consisting of “An accoun......
-
Coors v. Comm'r of Internal Revenue
...and necessary item incurred in the taxpayer's trade or business. See William F. Sanford, 50 T.C. 823 (1968), affirmed per curiam 412 F.2d 201 (C.A. 2, 1969), certiorari denied 396 U.S. 841 (1969). Uncorroborated oral testimony is insufficient to entitle one to the deduction. John L. Ashby, ......
-
Tax Court In Brief | Simpson V. Comm'r | Deficiencies For Unsubstantiated Expenses; Accountable Reimbursement Plans; And Basis In LLC
...to the strict substantiation requirements of section 274(d). See Sanford v. Commissioner, 50 T.C. 823, 828 (1968), aff'd per curiam, 412 F.2d 201 (2d Cir. 1969); Temp. Treas. Reg. ' 1.274-5T(a) (flush Corporate Tax and Expenses. A corporation is treated as a separate entity from its shareho......
-
Tax Court In Brief | Ismail v. Comm'r | Foreign LLC For U.S. Tax Purposes; Substantiation Of Schedule C Expenses; Section 274
...imposes strict substantiation requirements. I.R.C. ' 274(d). See Sanford v. Commissioner, 50 T.C. 823, 827-28 (1968), aff'd per curiam, 412 F.2d 201 (2d Cir. In this case, petitioners tried to claim car and truck expenses, but failed to provide contemporaneous logs, and the Court considered......
-
Tax Court In Brief | Patitz v. Comm'r | Schedule A And Schedule C Itemized Deductions And Documentation Requirements
...in section 280F(d)(4), which includes passenger automobiles. See Sanford v. Commissioner, 50 T.C. 823, 827 (1968), aff'd per curiam, 412 F.2d 201 (2d Cir. For purposes of substantiating an expense under section 274, Temp. Treas. Reg. ' 1.274-5T(c)(2) provides in relevant part that "adequate......
-
Tax Court In Brief | Luna v. Comm'r | Disallowance Of Itemized Business Deductions And Lack Of Substantiation
...where section 274 requires specific substantiation. See R.C. ' 274(d); Sanford v. Comm'r, 50 T.C. 823, 827 (1968), aff'd per curiam, 412 F.2d 201 (2d Cir. 1969). Deductions for attributable to meals and lodging while traveling away from home, if otherwise allowable, are subject to strict ru......